Business Issues

The Flipside, Another Way to Look at an Issue

I run into lots of entrepreneurs who go out of their way to keep their idea or technology secret. They search me out, want to get my opinion or advice, and start out by asking for an NDA. I am not special, they act the same way with anyone they talk with. In their minds, the idea is the most important thing and they have to do whatever they can to protect it! Now I am not naive and do understand that there are secrets that are the cornerstone to a business, but every idea is not as critical the formula for Coca Cola.

As any entrepreneur knows, getting started with a new company is fraught problems that can turn a great idea into a big mistake. There are just so many decisions that, if the wrong one is made, can kill or cripple the company. Worse though are the startups that haven't encountered the big "Oh Crap" as yet and there’s a glimmer of hope that entrepreneur latches onto. These startups are under the impression that they are really close to big sales/financing/strategic partnership. Encountering your first big speed bump can be a slow and painful experience.

For any of you who are not familiar with TechStars or the book that two of the founders published, I recommend that you investigate them. TechStars is a seed accelerator program that started in Boulder Colorado back in 2006 and founded by Brad Feld and David Cohen.

I also posted this on SoCal Buzz and thought I would re-blog it here. Anyone who is in startup mode or invests in start ups, should follow this program as it evolves.

I originally put this post on SoCal Buzz and am just getting around to posting it here.

Many times when I am listening to a pitch for a new Internet or Social Media company, the entrepreneur attempts to categorize their company as another YouTube or Facebook. Now it is entirely possible that this may be true, but it is highly unlikely. More importantly, using companies like YouTube or Facebook create an impression of the type of story we should be listening to hear.

Many times when I am listening to a pitch for a new Internet or Social Media company, the entrepreneur attempts to categorize their company as another YouTube or Facebook. Now it is entirely possible that this may be true, but it is highly unlikely. More importantly, using companies like YouTube or Facebook create an impression of the type of story we should be listening to hear.

I am constantly surprised when I see an Entrepreneur presenting to a group of investors and they make a real minor league mistake. The one I encountered recently was a company who passed out a Fact Sheet and in the Pro Forma Financial Projections indicated that the financials were available via an NDA.

Recently, Mark Suster, General Partner @ GRP Partners Venture Capital firm, took over as the host of This Week in Venture Capital a weekly Internet TV show/podcast. The link takes you to a recent show with Jim Armstrong a managing director of Clearstone Ventures.

There are still quite a few entrepreneurs and business leaders who think that Social Media is a passing fad. I think this is an extremely short sided viewpoint. Erik Qualman, author of Socialnomics, is certainly agrees. He put up a short video on YouTube the other day that stresses his point and is certainly worth looking at. For one, he gives an answer to the always asked question, "What is the ROI of Social Media?"