The Startup Velocity Question: Is it the Market?

Entrepreneurs often bet on markets that are yet to develop.

Good entrepreneurs often create new markets. Steve Jobs CREATED the smartphone market.

VCs bet on such bets.

Predictably, however, not all such bets pan out as envisioned. Timing is one of the trickiest things for a startup to get right. Often, the timing is wrong.

Sometimes, if the original hypothesis doesn’t pan out, entrepreneurs pivot.

Pivots after a sizable funding round or two is excruciatingly painful.

It often calls for a washout of earlier investors.
And it dilutes entrepreneurs.

Pivots are best done BEFORE large chunks of funding kick in gear.

Pivots may be necessary in the later stages of startup development if the early adopters fail to cross the chasm.

Some of these are achievable, but the onus then is on Positioning.

Key Takeaways:

• Entrepreneurs often bet on emerging markets.
• Timing is difficult to get right.
• Pivots are painful and dilutive after significant funding rounds.
• Early pivots are more manageable than later-stage pivots.
• Positioning becomes crucial if early adopters fail to cross the chasm.

My Question to You:

Are you evaluating the need for a Pivot for your startup?

If you think you need help, consider 1-on-1 Private Consulting with me. I will diagnose and create a path forward in an hour.

Photo by Alex Block on Unsplash

This segment is a part in the series : The Startup Velocity Question