Good morning, All,
We hear a lot about Investor Exhaustion, Investor Fatigue, and let’s face it: in NYC, there’s at least one pitch event a week. How often do you hear about something that’s truly original? Or something that’s more a feature than a company? As to Startup Exhaustion, we all hear about the upside of starting your own company, but the fact that most businesses fail, even when the entrepreneurs did have a great idea and worked hard. Remember: according to New York Angels Chairman Brian Cohen, angels invest in only one out of 40 companies; VCs in one out of 400.
Still, we would never discourage a potential entrepreneur. Although, we do want to throw something out there that we haven’t seen mentioned discussed anywhere and that’s the idea of Startup Consolidation. How many times have you met someone with a company similar to yours – okay, there are a few key differentiators – who is also struggling for traction? Ever thought of working together? Just a suggestion, which occurred to us, after having met with a very successful entrepreneur/investor recently, and pitched one of our startups (bonniefoods). He liked the product, he is interested in pursuing it, and when he asked how we planned on building it out, we answered honestly: we don't want to run the business, but rather, license the recipes/partner with a company/or come on board as the food scientist/subject matter expert (in this case, type 2 diabetes). We don’t know the food business – but we do know a hell of a lot more about food for Type 2 diabetes than even most nutritionists and dietitians. Nothing wrong with symbiosis.