I had a very interesting experience listening to three engineers just graduated, pitching hard for VC funding. They had a great product idea. They had really impressive presentation of just ten slides with all data, an investor will look for.
They even had initial order booking details for their product with people signed up with a notional money towards booking. Incidentally, this notional money was good enough to qualify as 20% of their investment to raise the next 80%. All they missed was “experience” of any kind of professional work!
All five people on the review board were really shocked to see the maturity of the idea, detailing and the passion these “kids” demonstrated. But, it was too difficult to believe this will work. Masters of several successful ventures and great risk takers of their time, found it difficult to see through this budding idea! Not to disappoint these kids who have been running around for a while, they decided to offer 10% of the ask, as a grant!
Pleasantly surprised as well as clueless on the next steps to raise the remaining fund required, these kids huddled for 15 mins. They were not keen on knowing why they were rejected the funding, nor any advice to go forward. Instead, they announced their decision to take the grant and not raise the remaining fund!
It was now the turn of VC team to be surprised!
Kids had a simple math worked out to show how they will realize their dream – Use the money they had collected from order booking and add this grant to make 1/4th of the volume required, to bootstrap and continue the chain. They believed if customers liked their product, they will get more of them sign-up, build a network and move forward….
It’s obvious that
New knowledge is filtered through existing knowledge, whether or not it is accurate!
But these kids had designed the product for their community – which they knew well, connected personally and priced it as if – they would buy for themselves! Currency of the knowledge ruled their decision!
They were immersed in their thought, idea and the work they set out for… This, I guess gave them the speed of thought, perseverance and the courage to go against so called conventional wisdom!
Wishing them great time in their journey….
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