Product ideation can be the most exciting stage in your starting a company. And once you are able to establish your MVP or most viable product, you might think that Venture Capital or VC firms will now be interested in investing in your company so that you can have your capital start up. However, if your revenue growth is not able to keep up with your capital expenditures, you will tend to run out of resources and try to ask for more from your investors. As a result, you can end up failing like most early stage startups because of that traction gap.
Bruce Cleveland is a Founding Partner at Wildcat Venture Partners, focusing on investments in Edtech, enterprise software as a service, AI, and IoT or the Internet of Things. His interests particularly lie in enterprise automation, training, and general business applications. Early stage companies or startups that are data and technology-oriented are what he seeks.
In this Episode:
- How majority of startups fail in the go-to market phase
- The four pillars that must be fleshed out in every stage the company goes through: product, revenue, team, and systems architecture
- How most early stage startups only have the product set but do not have revenue architecture, diverse teams, or structures in place
- How the traction gap framework includes assessments, action plans, and workshops for startups
- The concept of minimum viable category and how companies need to redefine their business or consumer category
- How to raise enough capital to get you from one inflection point to the next