It is about reducing risk…
“Entrepreneurs are not risk seekers…true entrepreneurs want to capture all the reward and give all the risks to others”
- Howard Stevenson – Venture Capitalist – 1980s
…and good people are the best way to reduce risk..
“I invest in people not ideas…if you can find good people, [and] they are wrong about the product they will make a switch”
- Arthur Rock – Venture Capitalist – 1960s
…guided by some operating realities
- New ventures are inherently risky: what can go wrong will go wrong
- Nothing is set in stone: products/services and target markets can and will change
- Detailed financial projections for a new company are an act of pure imagination
- Everything looks great on paper…but chances are: it will take more time than you project; and, it will take more money than you believe