US Venture Capital, what ever became of Lean ? Are Europeans doing a better job with their cash ?

No reason to run to the Middle East.

I do feel that many European startups take a much leaner approach in building a company base with reliable traction first. As there traditionally has been less money to be distributed, the European early-stage companies are often much smaller and need to work frugally. Given the reset in VC funding and the SVP shock in the United States – many smaller venture capital companies and their early-stage investments will be “flushed out”.. and disappear. In my opinion, this is a “natural” correction.

Below is a book that was very popular 10+ years ago and if you’re not familiar with these principles you should buy the book for your team, and practice practice practice !! No reason to run to the Middle East.

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Are you solving a problem for a set of customers in a REPEATABLE way ?

The text below is a reminder to everyone that is investing as well as those willing to take on the adventure of building their own start up company.

“Approximately 70% of startups fail. Of the remaining 30%, some will deliver a 3–5x returns, which is considered a very good return. But the VC still needs roughly 5% of their companies to deliver 10 to 100x returns to balance out the losses, and drive significant returns.”

Are you solving a problem for a set of customers, or a market, in a repeatable way ?

(Matt Murphy, Menlo Ventures)

 

Build Continuous Value, as your Market Segments Mature

While many companies have technical expertise, their focus on value positioning / marketing and customer communications often fall to the side. A perfect example is the number of AI and ML companies still offering to build models – please stop already. Communicate a different message to show tangible value.

Please also read this book .. so that you continue to offer value, and not just another “me-too” technology.

Book Recommendation for Silicon Valley CEOs

” Davidow clearly spells out 16 principles which increase the effectiveness of marketing programs. From examples as diverse as a Rolling Stones concert and a microprocessor chip, he defines a true “product.” He analyzes and explains in new ways the strategic importance of distribution as it relates to market sector, pricing, and the pitfalls it entails. He challenges some traditional marketing theory and provides unique and important insights developed from over 20 years in the high-tech field. ” (Bill Davidow)

Disastrously Wrong

“Giving the people what they want is fundamentally and disastrously wrong. The people don´t know what they want.. provide them with something better.” (Samuel Rothapfel, 1920´s – Value Innovation)

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