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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 Responses to “Entrepreneurs. 5. VCs, Angels, Disruptive innovations”

  1. site admin Says:


    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
  2. site admin Says:


    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
  3. site admin Says:


    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

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