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To do this they have to accomplish five things; 1) get dealflow – via networking and legwork, they identify likely industries, companies and teams with the potential for rapid growth (less than 10 years), 2) evaluate those companies and teams on the basis of technology, market opportunity, and team.
In exchange, these VCs/companies get early looks at new dealflow and offer aspiring entrepreneurs feedback and advice on their business plan. For those of you who don’t know, business plan competitions are held by universities who get their students to enter and compete to see who has the best business idea.
Steve Blank, author of Four Steps to Epiphany , has helped formulate the thinking behind the Lean Startup methodology , together with Eric Ries. He observed that most startups that succeed aren't lean: their goal is to have an exit rather than a scalable business. This is leandevelopment without any customerdevelopment.
They have many, many man-years of development and customerdevelopment in them. I think I might be able to speed things up, especially now that everybody always talks about the book The Lean Startup. And so professional angels that have access to real dealflow? Edwin: There are a million others.
Customerdevelopment would be reduced to a single person exercise that could be repeated in parallel dozens of times over, ultimately yielding 30+ companies a year. Fourth, a development-for-equity firm should be very wary about making investments opportunistically in addition to handling cash projects. Our model at Casual Corp.
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