The increase in venture capital – a realistic

I do not want to discourage the parties in their efforts to start the Next Big Thing. Many of you see your journey as a convincing plan work to make presentations of companies known risk and will receive 3 million for 5% of pre-selling the business and get started. Product development is progressing smoothly, with each step, you get a score treated the second round, and the country of very high profile. Two years later, you have an Initial Public Offeringwith a market capitalization of $ 350 million. Fast forward two years and are subject to tender a war between Microsoft, Google and Interactive Corp. has finally agreed to buy $ 3 billion. Life is beautiful.

Wow, that was easy. Unfortunately, it is about 10 million. I was listening to CNBC this morning and reported a new test developed by Stanford Ph.D. students, identify those who would take two to six years before they develop Alzheimer's disease. This is an ideal Game of risk – a huge potential market, the founder of the company, with high credibility and excellent opportunities for future health care cost reductions. On the surface it seems that the challenge of fire insurance for children in danger, but CNBC reporter said he had difficulty in Venture Capital. What a surprise.

If this company has problems, the battle, were taken into account. Because nobody has a crystal ball, seven out of ten investments very risky. In this context, Venture> Capital Investors looking to thirty times return on investment within three years. Many potentially successful businesses fail to realize the promise of his great idea, why fall into the trap of risk. I am passionate about your idea and we believe will be the next success story. I am very optimistic, which is essential if the nature of risks that have a start-up needs. Its biggest flaw is that it focusestheir efforts in the dance of danger. Endless meetings and presentations, followed by delays and presentations with other team members of the same adventure.

There are other alternatives. How about a strategic alliance with a large company in your industry? How about a licensing agreement with a major player? This is a role of Value Added Reseller for you? As would be exchanged for a sales job? If you want to sell your company? If you need a good idea and leadership of a large market,is likely that there are other companies that are identical or very similar solutions. In the current economic context, resulting in a very narrow window of time in order to achieve economies of scale. You are spent on the clock for the status of your account or register before reaching a well-funded competitors, only their market position.

The risk is very glamorous, but do not take short-sighted in their approach to their great idea. There are several important variants, whichbusinesses provide a strong and profitable small under the radar, and increase the risk of scale and reach the next level.

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