Next Things First

More on the Cold Winter… From an Entrepreneur’s Perspective by Rob Coppedge
December 11, 2008, 11:55 am
Filed under: Uncategorized | Tags: , , ,

[Fearing this might get lost in the comments, I wanted to highlight Henry’s note… we agree completely with his views:  capital efficiency is king and  start ups that combine the right mix of opportunism and discipline can survive and thrive in this environment.  However, I do think there is a difference between disciplined capital efficiency (which relates to internal company decisions) and the systemic misalignment (e.g. mess) we seem to have now (which is all about external factors)… something to think about…  Rob]

Yep, it’s true. “Money’s too hard to mention.” Silver lining? The benefits of undercapitalization are many. You hew closer to the most urgently needed customer value, delivering features and benefits in a very agile way (i.e. monthly and quarterly, not annually), and setting your company up for explosive growth when the alligator arms re-grow. (Alligator arms are what some people get when the bill comes to the table and their wallet suddenly is out of reach). Also, well-capitalized companies often end up overspending, delivering too much complexity, and learning bad habits that are hard to unlearn later. Yes, 2009 may be an endurance test. The companies with the most money are often the most risk-averse. But the risk takers, mavericks, angels, and (just maybe) a select few health industry innovators will reap the rewards in 2-3 years of some huevos today.

Posted by Henry Albrecht, CEO,


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