Bad advice for entrepreneurs: 2 of 7
 

Technology is what really counts.

Most of the world’s new technology is developed by large multinational groups. Conversely, the vast majority of successful start-ups are far removed from leading-edge technology.

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Applications of new technology actually have much bigger markets than the technologies themselves. Start-ups can thrive in this space. Distribution, services and ostensibly mundane products offer almost unlimited opportunities for innovation.

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Many investors are obsessed with patents and proprietary technology, reputed to be the only reliable barriers to price competition. I think well positioned brands and creatively targeted distribution offer protection that is equally effective and much longer lasting.

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Transforming leading-edge technology into a profitable business almost always needs at least two rounds of substantial equity financing. It also requires close contacts with the major accounts who will be the first customers and often the only ones. That is where venture capitalists have an important role to pla

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Moreover, almost all new technologies have relatively short lives because better technologies inevitably emerge sooner or later (usually sooner). One cannot build a long-lasting business on a new technology by itself.

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Bad advice
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"You will need at
least a million..."
Technology is what
really counts.
The "first mover"
myth
Your national
market is a
natural platform.
Start in high gear.
Awareness,
awareness, awareness
You must have
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