Friday, February 15, 2013

Good is Not Good Enough

There is no country in the world where it's as easy to find venture capital in the stock market as the United States. Ron Chernow

You don't have to read many of my posts to know I am not a fan of the metaphor. (Copyball, Don't Skin the Turkey, Moldy Cheese, and Don't Spend Billions on a Metaphor). So it is with much hypocrisy that I publish this post about the investor and the entrepreneur.

"An eagle was sitting on a tree resting, doing nothing.

A small rabbit saw the eagle and asked him, 'Can I also sit like you and do nothing?'

The eagle answered: 'Sure, why not.'

So, the rabbit sat on the ground below the eagle and rested. Suddenly, a fox appeared, jumped on the rabbit and ate it.

The moral: If you are going to sit and do nothing, it is best to do so very high up." author unknown

As an entrepreneur, don't forget that the investor is perfectly fine doing nothing. Showing an investor a deal that is good is not good enough. Even showing an investor a great deal isn't good enough, if someone else has a greater deal.

This is perhaps the biggest mistake I see from people (and me) looking for money. They have good deals, but they don't have great deals. And for an investor, who already has a big pocket full of cash, why would they risk moving for anything other than a deal which clearly screams it could BE different.

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