“I have no idea what I’m doing…” – and it appears he is not alone!
Wednesday, 18 May, 2011 Leave a comment
Is this the reason why VC companies (reputedly) rely upon 10% of their investments to make them money!!?
If so, “why is it so difficult for experienced people with a good level of knowledge to get a break and some backing?”
But this has really struck me and it also begs the question: how can bankers/VC’s be so bad at spotting winners???
I do understand that market conditions, etc. DO play their part but, surely, the failure rate (and perhaps the following) suggest that their ability to assess the risks associated with a new venture are “poor”? So much of what a company needs for success is dependent upon how it is structured and operates, quite apart from the aspects that lie outwith its direct control e.g. market, economy, etc.
I would love someone to help me understand this…
I am the CEO of Svpply, Inc., a social shopping S-Corp operating out of New York City. My company has been the recipient of over half-a-million in investor dollars, for the stated purpose of building an unknown, 3,000-member web service into a cultural phenomenon, and I truly have very little understanding of what I am doing.
I went to school for Graphic Design. I was supposed to graduate in 2004, though I didn’t complete the necessary Algebra class until 2009. Put me in front of Illustrator and give me something to design and I’ll execute the hell out of it. I’ve spent years of hard work developing systems in my brain for tackling visual solutions to communication problems. I’ve designed some nice logos and some nice websites. I enjoy naming products and I think I have a talent for it. I have an understanding of design that extends well past the aesthetic. I am proud of all this because I have worked for it.
But I have zero experience or expertise in building a company. I’ve never worked at a web or product startup, I’ve never worked in a healthy team environment. The design studio I co-owned was flawed to its core, and the companies I’ve worked at have had mediocre management.
So I’m learning on the fly.