The NESACS Blog
From the Northeastern Section of the ACS, focusing on career management and development
Categories:

Archives:
Meta:
February 2013
S M T W T F S
« Jan   Mar »
 12
3456789
10111213141516
17181920212223
2425262728  
02/02/13
Entrepreneurs. 5. VCs, Angels, Disruptive innovations
Filed under: Job Offer (Situations), Legal matters, Observ. Trends, Alternate Career Paths
Posted by: site admin @ 9:53 am

Those individuals who desire to go off on their own,
join a smaller emerging venture or split off from
an existing organization or university are part of
a group called entrepreneurs.

DISRUPTIVE TECHNOLOGIES
Entrepreneurs often have a different “value proposition”
than existing organizations.  Disruptive technologies,
Christensen notes, separates existing and entrpreneurial
ventures.  Their markets and customers are different
and they expect that the advantages and cultural norms
will take hold over time. 

Examples:
traditional classes in universities           MOOCs
brick and mortar retailing                        Internet commerce
manned military fighters                         unmanned drones

ENTREPRENEUR’S SUPPORTERS
An entrepreneur is a class of innovator who can lead,
build strong functional teams and understands how to
motivate and sell ideas.

It might be useful to explore the nature and roles of
angel investors or groups and venture capital VC organizations.
A business management view reveals SIX stages:
 - seed funding, often by angel investors [will say more]
 - start-up funding for market assessment and product
development
 -  early production and sales funding
 -  working capital funding for product refinement and
new market introduction
 - expansion funding
 - bridge funding to “go public”
Interestingly, certain VCs can focus on different segments,
localities and industries. The amount of help, time
frames and expectations can be different and depend on
each situation.

Angel investors take large risks of possible significant
gains, for example, 20x to 30x gain over 5- to 7 years,
in a win-lose venture.  Angel investors or  groups need
to be accredited by the SEC.  Many will seek confidential
and proprietary information as part of due diligence.
The entrepreneur must formalize and monitor
confidentiality (as non-disclosure agreements are not
the norm).

3 comments