Words of guidance and insight from an experienced entrepreneur and private investor to high-tech entrepreneurs, start-up companies, and fellow investors.
Thursday, September 2, 2010
These days, you need to be capital-efficient
Back in the 90's, VCs would put millions of dollars in a high-tech start-up, and patiently wait several years for the start-up to build its hardware product (software is a different story). If the product was successful, everyone won, and many did. It's not that way anymore for most investments. Unless you truly have a blockbuster hardware product, these days your start-up needs to be capital-efficient: less money has to go farther, and the point in time when your start-up either gets springboarded to the next level or gets its plug pulled is shorter. Keep that in mind when developing your funding strategy and product roll-out strategy.
Labels:
efficient,
raising money,
VC,
venture capital
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