January 25, 2010

Start-Ups | Venture Culturists

Realizing Your Dream.

Imagine you have developed a new software app, perhaps a new game, maybe something that will revolutionize the pharmaceutical industry or a flashing blue trapezoid with a potential customer base in the millions.

Problem: No more money.

You could take your ideas, drawings, business plan and prototype to a venture firm and see if they’ll give you some capital to develop the idea further. This does come at a cost. They become a partner in your business and they would own a piece of it.

If VCs own too much of a stake in your idea, they will have a say in decisions. If they own a majority piece of your lifelong dream they in essence already control your company.

I have met people who have had excellent experiences with VC firms and some who have not. But when I drill down to the stuff outside of the invention the puzzled looks begin.

• Who finances the creation of culture in your new company?
• Who helps you create an atmosphere of collaboration?
• Would you benefit from the services of a Venture Culturist?

Your VC has given you funds to purchase collateral or hire staff. But what happens once your invention is in full production? And if you are an idea entrepreneur and have no actual product yet, get familiar with the term bootstrapping.

Spend And Win?

Perhaps something to think about if you are working away on that next cool thing with hopes of an IPO through venture capital – not only do you need to decipher a market for it but you also need to be able to create an atmosphere for the people who will help you make it.

Are we too focused on product and not people?
Could this be one of the reasons why so many ventures fail?

sustained engagement in the relationship economy.

image credit: middlebury.edu

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© Kneale Mann knealemann@gmail.com people + priority = profit
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