Betting on Startup Gods
The Hyper Team @ Venture Hype | Sep 30, 2009
Got money to burn? Want an adrenaline-pumping rollercoaster ride? Forget casinos. Try betting on a startup founder who fits the following descriptions. You’re pretty sure the startup will fail so you have nothing to lose, except maybe that small wager of tens of thousands of dollars. But if he ended up succeeding, be sure the media will blast out some sensational stories and make you a star overnight. Sure can’t get that from a casino!
1. The Armies of One
He’s the CEO, CFO, CTO, CMO, and C-whatever-O of the company. He’s positive that no one can do a better job than him so he insists on handling everything from admin and programming to accounting and business development — all by himself. He’s even his own female assistant. When you call and a female with a manly voice named Gladys answers the phone asking whether you’d like to leave a message, yes, it’s him.
2. Far, Far Away From Civilization
So what if there aren’t any other people within several hundred miles in where he works? Experts, qualified employees, and supportive and reliable infrastructure are overrated. You should be glad that he’s also far, far away from the bars and clubs and all ‘em distracting temptations.
3. Smart and Flawless
He’s so smart he doesn’t need to accept the lowly advice of others. Why can’t you understand that his original idea will succeed regardless of flaws and lack of market demand? Evolution is for idiots like Google.
4. Big Ambition, Big Dreams
He’s ambitious and he’s got big dreams. Of course he wouldn’t restrict himself to a target market. Target anyone that walks and increase the market size. Wow he’s absolutely on to something.
5. Keeping the Cool
He’s got a great idea but he’s only half enthusiastic about his venture. Wonderful! You sure don’t want an entrepreneur who can’t stop talking about his business and quit his day job because he’s so engaged with his new company. A lukewarm founder would work better with your bedtime schedule – at least he won’t be calling you in the middle of the night telling you about his industry-disrupting innovations.
So what do you think? Wanna chip in our fund to invest in bet on startup gods like that? It’ll be one heck of a ride!
Filed Under: Angel Investing Basics • Picking Winners
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[...] a willingness to take a hands-on approach with the steamrolling Know-It-Alls. The latter, the Armies of One, think they can do it better than anyone else. So they do. And usually, it becomes quite apparent [...]
[...] does a pre-seed tech company worth in general? SC: I define a pre-seed company as one step past startup. Pre-seed companies are usually past proof of concept and moving into prototype design. In the case [...]
Oh yes, this happens A LOT. After all, no one likes being rejected.
Oh, this happens A LOT.
I like the description of the entrepreneurs who are smart and flawless. On the television show Shark Tank, I seen plenty of these individuals walk through their doors and pitch their goods only to have experienced business people tell them their ideas are lousy. But the entrepreneurs walk out telling America the business people don't know what they're missing and will that the product will still be big even if it means mortgaging their house and their kids' futures.
Would make a great topic! Stay tuned.
[...] This post was mentioned on Twitter by Israel Butson. Israel Butson said: RT @jlojlo: Betting on Startup Gods http://bit.ly/VsiX0 RT @venturehype [...]
I recognize some positive traits from other success stories of people getting a successful venture off the ground.
I was wondering if many people also consider these kinds of investments, prepared for a loss that will be somewhat useful to write off against their other investments?