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).
February 2nd, 2013 at 10:00 am
VC NETWORK AND TEAM
Venture capital is a supportive team effort, where
partnerships provide services and insight to
entrepreneurs.
Invaluable insight can come from people who
have been entrepreneurs since they can offer
support in more than facts and actions.
WSJ, the accelerators, 1-24-13, p. B9
February 2nd, 2013 at 10:06 am
ANGEL INVESTMENTS
The elevator pitch and team you assemble are
integral to success with angel investors.
Nonetheless, a majority of first time companies
need to attract funds from personal savings and
loans.
More recently, ‘Kickstarter’, internet based funding
is playing a role.
WSJ, the Accelerators, Jan. 17, 2013, p. B4
February 2nd, 2013 at 10:10 am
MANAGEMENT
Entrepreneurs who survive, measure and track
many aspects of their enterprise, questioning
much data, and seeking advice and counsel.
Decisions are made in the midst of conflicting
information where you seek to fail fast and
learn.
Seek to fail where it does not cost a lot and it
surfaces problems.
WSJ, the Aceelerators, Jan. 3, 2013, p. B6
It is tempting in the search mode to find
many different spaces to enter. Focusing
on a few, while maintaining a vision and
passion and seeking traction.
WSJ, the Accelerators, Jan. 10, 2013, p B7