Lately i spend a great deal of time thinking about THE GAP between VC mindset and entrepreneur mind set.
this includes CEOs of VC backed companies, my portfolio included, and not just CEO/entrepreneurs of companies trying to raise money.
what i find is that people are fascinated with innovation way too much.
and boy, that is understandable.
innovation is fun.
as Israelis we love to think out side-of-the-box and to behave outside of any process or methodology. as my mom likes to say, i’m special
in addition, a real innovative product or service offering
- is differentiated
- can redeem premium pricing
- is attractive for M+A purposes
- is defensible
many people, especially customers,
- do not like innovation
- do not like to change their ways
- do not like to buy from start-ups, unless they have to do so
- do not like the risk that comes with innovation
this actually creates an innovation barrier in customers mind.
what are the keys to break this barrier?
i would love to hear your thoughts
but, what is clear to me is that execution is a great way to show that you have figured things out
- you promise a OEM partnership with in 6 month? make it happen
- customers can see value in the product within hours? wow
- the product can be installed in 1 hour by a channel partner sales engineer? you will scale
my belief is that in the software world these are the sources for differentiation and the keys to success much more than how innovative is the product.
at this point in time, in the israeli hi-tech market, execution is much more rare than innovation.