In Crossing the Chasm, Geoffrey Moore describes the gap in the adoption curve, where the marketing effort needs to be changed to appeal to the Early Majority, when most of the Early Adopters have been acquired. In talking with one of the older fledglings, I realized that there is a similar gap earlier along the curve, between the initial customers and the bulk of the early adopters. Here’s...
Ah… the proverbial hockey stick in a startup’s financial projections. No one believes it, and yet it must be included in any investor pitch. Why? Two reasons. First and foremost, investors are looking for big opportunities, and if the revenue forecasts grow exponentially, that serves as a proxy to claim a large opportunity exists. Second, investors want their money back (and more), and...
Raising money is a sales process, one in which a very small percentage of customers want what you are selling. Following on “If you think it… they will fund“, if you actually want that funding, you’ll need to talk with investors. How many investors??? More than most entrepreneurs think. A conversation with a potential fledgling led to this post. He was frustrated at...
