You’ve probably heard the age-old startup investing debate that pits the horse against the jockey. Basically, when VCs and angel investors evaluate a young company’s potential, do they place more weight on the horse (the company) or the jockey (its founder)?
There’s been a plethora of research taking one side or the other, but a recent Forbes article gives the most recent point to the jockey. The piece, “If Investors are Not Biting, Perhaps You Should Take it Personally” explores the notion that personal traits are, in fact, what influences investors to invest.
But it’s not as simple as whether or not the investors like you. The author talks about the Mickey Mouse Investment Model. You know the mouse he’s talking about, the Disney character that’s immediately recognizable with just three circles. Here’s how Mickey’s head shape works in the investment world.
“One ear is the business plan and market outlook. Another ear is the financial terms that the company is requesting. The face (the big circle) is the key team members.”
Read the article and see if you agree. Is it the horse, the jockey, or the mouse? Give your opinion on Twitter using #TopofMind.
If Investors Are Not Biting, Perhaps You Should Take It Personally
When someone says, “don’t take it personally” especially a venture capitalist, you might want to actually take it personally. Often times personal characteristics are what influences that VC or investor to invest. Refer to the Mickey Mouse Investment Model to see how VC’s make decisions. Typically when investors say no it is because they are not invested in the team.
New York among U.S. leaders in entrepreneurship
According to a new State Entrepreneurship Index that the University of Nebraska-Lincoln creates, New York ranks third in the US in entrepreneurship. California takes second and North Dakota takes first. Both New York and North Dakota held their positions, while California leaped from eleventh last year to second. The rankings were based on the following: growth in business establishments, the rate of business formation, patents per one thousand residents, average proprietor income and the growth in establishments per capital.
Berlin, the Startup City: Big Dreams and Growing Pains
The Berlin Wall fell in 1989. This attracted artists, musicians and creative to the city. Housing prices have risen over the years in Europe except for in Berlin. The cost of living in Berlin is much more affordable than London or Paris making it a great place for young entrepreneurs to live and start companies. Not only is it easier for international workers to get visas in Berlin, but also Google is helping startups here. The difficulty with starting a company in Berlin is not getting started, but taking a business to the next level.
VC Peter Thiel: You can either invest in ‘bits’ or ‘atoms’
Peter Thiel, an investor, believes that one can either invest in ‘bits’ or ‘atoms’. He thinks that there are too many ‘bits’ and a shortage of ‘atoms’ meaning that there are too many companies that are addressing an issue, but not necessarily how to conquer the problem. Both companies are necessary, we just need more atoms. For example, a company dealing in bits would be a company predicting if one will get Alzheimer’s and the atom company would be one that is actually trying to cure Alzheimer’s.
10 Things You Must Do to be Happy in Your Business
Embrace change
- Focus on the future
- Stop making excuses
- Accept your own mistakes
- Do it yourself
- Have no fear
- Realize that you’re not always right
- Acknowledge your strengths
- Stop placing blame
- Create your own expectations