Early-stage LEAD investors face the limitation of having to make a LEADinvestment decision, not knowing, IF and WHEN, the StartUp will take-off.
In other words, they do not have the benefit of momentum, and must make an intrinsic value decision (somehow)!
They usually cope with the above-mentioned limitation (not knowing, if and when, the startup will take-off), by investing in a big enough portfolio of great entrepreneurs, with great products, solving big problems (just a ‘fact of life’)
The outcome however, invariably follows a power law that governs this space, namely, 1 or 2 (on average) of these portfolio companies may actually become home-runs.
In other words, even the best early-stage LEAD investors are vulnerable, and must use their gut well to find the next great companies.
Years of pattern recognition have given them powerful patterns to make some practical predictions about the future, but this is still far from perfect.
To hit the next level of performance, one has to move beyond these gut-feelings or trusted patterns.
There is only one way to move beyond one’s gut-feeling, and that is to find the first principles that govern the creation of great companies.
The first principle way, is far more powerful , because it enables us to create new realities.
By default, it enables creating (finding, co-creating and funding) Emerging New Market Category Kings.
To realise the full benefit of the new way, one does however need to adopt a new rule set, in order to move away from educated guessing, and towards rigorous testing (against the first principles)
The first principles governing this space, have been discovered and codified, and a new way scientifically re-engineered, resulting in a new path for start-ups to become Emerging New Market Category Kings.
Today, a virtual factory-style Market Category Generator (MCG) is able to answerthe two “IF and WHEN, the StartUp will take-off” questions for LEAD investors, that were previously impossible.
Furthermore, as a LEAD investor, if you’re able to gain the critical, non-consensus intelon Emerging New Market Category Kings, AND you’re an ‘insider’, then you’ll neutralise the negative effects of the power law, and beat the market (8 min. video below to learn more)
The rewards of being a successful LEAD (intrinsic value) investor, means consistently beating the market, and showing great returns.
In other words, if you command the first principles that govern the space of early-stage venturing and investment, then you’ll know IF and WHEN, the StartUp will take-off.
Other topics by TMARA, include :
Stop turning friends and family into fools!
HOW to know, IF and WHEN a startup will reach Product-Market Fit:
The primary cause of startup failure:
Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market!
www.tmaragroup.com for more conversations
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