Early Investment Is Key!!!! Unless It’s Not…..
This topic of discussion is very interesting to me. I happen to find inventors and entrepreneurs who often feel it’s “necessary” to seek investment early. Now that certainly does not mean that a majority do, as there are many successes where individuals self fund or utilize other resources.
Nevertheless, I’m writing this article for “innovators” who may not be abreast to entrepreneurship and investment, and have a cursory understanding of what they should do.
Individuals often come to me with the idea that minimizing risk and taking investment early, is the ideal way of bringing innovation to life. Yes, there are major benefits to investment, and I’m certainly not downplaying these. But in my opinion, it depends on what you’re trying to achieve.
If this is merely an idea, that you have no real interest in turning into YOUR business for the long run, I can certainly see a scenario, where partnering with an investor at an early stage can be worthwhile.
However, I often come across innovators who wish to build a business for the long run.
To these individuals I suggest: HOLD OUT FOR AS LONG AS POSSIBLE.
See, the earlier you take investment, and the larger the investment is, the greater amount of control you cede to your funding party. (More often than not)
And for those who consider themselves “innovators”, depending on who your investor is, this can lead to a rocky relationship if you don’t share the same vision and principles.
Sometimes innovation takes time, and is not always understood at first. Everyone has their gifts, and those who are creative and extremely innovative often see what others don’t, prior to conception.
So if you take investment from those who find solace in ROI, profits and immediate gratification, depending on how much control you cede, you may never be able to fully exercise the depth of your creativity, due to conflicting ideologies.
On the other hand, if one does seek early investment, I urge entrepreneurs and inventors not to match with the any individual who comes running with cash. Ensure this individual or group, is a good fit for your innovation, and brings some intangibles to the table.
Perhaps your investor already has a business that your innovation would fit perfectly into, or perhaps your investor has had success with an innovation within the same industry as yours. So that you not only gain a mentor, but also his or her valuable relationships, which could be leveraged to take your innovation to the next level.
As always, just some Food 4 Thought.