29 August 2010
Think Big, Execute Small
09/01/10 08:59 Filed in: Misc
Do you want to have a fundable startup? Then, "think big, execute small"!
VC money (and institutional angels, too) are looking for large exits, $200-300M+. Consequently, they are looking for small growing markets with high-growth potential that can support a company valued at $300M+ at IPO or M&A. So you need to "think big" with your business idea. Something that is topped out at a $60-80M exit won't be attractive to a traditional VC since those exits will naturally appear during the journey to the $300M+ exit.
However, you need to "execute small". Show a consistent track record as a founder/CEO of doing the small stuff well. Knowing when to invest and when not to invest is critical. Also, good people decisions go a long way to success – don't be afraid to hire people smarter than yourself. Finally, set realistic milestone and meet them!
"Think big, execute small" is the recipe for a winning VC-backed startup.
VC money (and institutional angels, too) are looking for large exits, $200-300M+. Consequently, they are looking for small growing markets with high-growth potential that can support a company valued at $300M+ at IPO or M&A. So you need to "think big" with your business idea. Something that is topped out at a $60-80M exit won't be attractive to a traditional VC since those exits will naturally appear during the journey to the $300M+ exit.
However, you need to "execute small". Show a consistent track record as a founder/CEO of doing the small stuff well. Knowing when to invest and when not to invest is critical. Also, good people decisions go a long way to success – don't be afraid to hire people smarter than yourself. Finally, set realistic milestone and meet them!
"Think big, execute small" is the recipe for a winning VC-backed startup.
