Vijay Anand muses about building “businesses that don’t make money”.
It poses a question – why are VCs insisting on a business model? Clearly the stress here is on investing in intuitive ideas that drive user base for everyone to benefit from. The trouble is in getting investors to fund it early when revenue visibility is poor or seemingly non-existent.
So, how to get around that?
I think the trick is in seeing things that lot many others don’t. Often opportunity comes in coveralls that look like work. Get around to work on some idea that isn’t good now because the infrastructure just isn’t there, but will be good five years from now. Capture your imagination in a logical sequence, spread it across a visual format to be evaluated by investors. Go easy on them. Most VC pitches fail not because the idea was bad, but founders didn’t know how to sell it.
Be passionate. Be always-on. Recognize likely problems and figure out ways to solve them. Does work feel like work? Ask yourself. If the answer is yes, you failed the test of passion. Don’t go further.
If you’ve passed it, all that is left is to intrigue an investor; make her see right through you!