Archive for the ‘start-up’ Tag

Some great advice from the venture capital world…

I spent the Thanksgiving holiday with my brothers in North Carolina.  I headed down a few days early so I could take a break from my most recent product launch and do some food shopping (I was the chef this year).

During my trip, I was able to meet some venture capitalists to talk about my future ambitions in the startup work.  I am in the process of changing my career direction, so I couldn’t wait to discuss my ideas with these individuals.

Here is some of the great advice I got:

  1. Begin at a startup, end as an investor – Since the venture capital world is very closed and selective, the best way to become a VC is to join a venture-backed startup, find some success (obviously, this is the hardest part), and do some investing yourself.  That way, you can bring real-world experience to a firm as a partner.
  2. Focus on a sector – It is difficult to be “all things to all people”, so you should find a niche and be the best you can at it.  Personally, I am not sure what my niche will be, but I have a few ideas…
  3. Product experience helps, but it isn’t necessary – Since I am by no means an engineer or a coder, this thought was particularly helpful for me.  For example, someone with operations or biz dev expertise can be just as valuable as a CTO.
  4. Revenue is king – I asked one VC which he prefers in a business he’s investing in… a great product with a large audience, but without a defined business model, or a smaller product with a strong revenue model.  The VC said he would invest in the latter.  I think I’d have to agree, but some other very smart investors I respect a great deal may disagree.

I can’t wait to act on some of this advice soon…