Words of guidance and insight from an experienced entrepreneur and private investor to high-tech entrepreneurs, start-up companies, and fellow investors.
Friday, September 17, 2010
Taking on the big boys is a tough row to hoe
"Wow, I just thought of this great new kind of TV. It's a great idea. All I need to do is raise a few million, design it, manufacture it, and they will come to buy it." Ouch. An investor will look at you and see "risk" written all over this deal. Unless you're a person (oops, I mean a complete team) who has a proven track record in the consumer electronics industry and is well-connected in that industry, it's a non-starter. And even if you are such a team, you're taking on the likes of huge multi-national players who don't take kindly to competition. "But, what do I do then?" Firstly, if you have some great IP around your new kind of TV (or fuel-efficient engine, or new semiconductor process, or...), get it protected. Start with a provisional patent if you're still validating the technology and/or the market, then move on to a PCT filing within a year. Don't disclose it to anyone without an NDA. Once you have protection, then, talk to those who know how to make your 800-lb gorillas your friends. That is, turn your competition into partners. These players have the ability to turn your new kind of TV into a market success.
Labels:
competition,
market,
partners,
patent,
start-up
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