The Business Midwife
At the Virtual Forge, we have over the last few years gotten involved in some new start-ups in a capacity greater than just building its technology under contract. We have now taken equity positions in 4 companies through our VF accelerator, and these companies are very very different.
This difference has recently lead a friend to ask me what we look for in a company before we get involved. At the time we were creating a standard format to evaluate them and onboarding to do list for these company’s, and it got me to looking at our action plan. The reality is that it clearly splits into two categories. The less important is financial planning, marketing, and product planning because this can be brought in as required.
For me, that left me with three things that matter.
1) It’s an excellent idea that will do something to help with people’s lives. It can be something truly high-minded or very practical to save people’s time. It has to be something to be proud of.
2) It has to prove revenue potential. Does not need to be crazy amount but a real opportunity with an actual needs to show commitment. That is a real litmus test.
3) You need to really rate the people you will now be partners with and feel that you can work productively together. In many ways, this is the most important part. You are betting on this team of people to work effectively together to defy the odds and build a successful business.
Sticking to this rule of three is critical and this is a knowledge that has been achieved with some pain. I joke that I am now a business midwife so sticking with a proven formula helps for a smooth delivery.
Our incubated companies include Fleet Innovations, CleanCar.io, Freedle.com, and Neo Risk Management
#virtual forge#dreamtek#neo rm#fleet innovations#innovation
Agree #3 by far most important
Co-Founder at Second Sight Data Science and Founding Partner of Dreamtek Group
7yThe boy done good Clar
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7yAll that sounds smart to me!!!