Don Oparah recalled a panel discussion he attended several years ago where the idea for Venture Aviator was born.
A representative from a Silicon Valley venture capital firm said they look at an average of 3,000 deals each year.
And they fund five. Not 500. Five.
“I asked myself, ‘What happens to the other 2,995?’” Mr. Oparah recalled.
“I was sure there were some good businesses among those 2,995.”
It is also important to quickly get out in front of your user base, Mr. Oparah added. People are used to trying new technology, giving feedback and seeing new iterations.“Put it in the user’s hands, let them play with it. Don’t wait.”
Consumers are used to their mobile and smartphones, and when something does not intuitively work, they will let you know.
Venture Aviator also helps companies maximize their competitive advantage, the meaning of which varies with each one, Mr. Oparah said.
In the tech sector, that meaning is undergoing stark change. Pure intellectual property is becoming less relevant as development costs have declined open infrastructure becomes more popular. Best to concentrate on differentiators like customer service, ease of use and strategic partnerships which create value and reduce time to market.
Another area tech entrepreneurs must prepare for is the challenge of keeping staff, especially if they are located in Silicon Valley or another hot spot where they can easily move next door.
Do not make the mistake of thinking money equals happiness and loyalty. It is more than that Mr. Oparah advises.
“It is not just money. There is also the sense of ownership, that they have a say in what is being done.”
Look for people who can thrive in the environment of a fast-growing tech startup, not everyone can, Mr. Oparah said. Then listen to what they have to say.
Carefully consider the makeup of your core team, Mr. Oparah added. Look at how the different positions need to interact and how personalities mix.
Venture Aviator helps companies by outsourcing some IT activity to skilled teams in areas like Eastern Europe. That allows the startup executive team to concentrate on a few key areas. The flexibility keeps costs down and makes it easier to respond to demand fluctuations.
“That allows the software team to improve the core product and the sales guys to sell,” Mr. Oparah said.
Venture Aviator can partner with companies at different growth stages, Mr. Oparah said. With some they come in at the onset and help the founders define the core concept and then build it out. Other times their work concentrates on building out a vision into a tech product.
“We provide them with road maps to watch out for,” Mr. Oparah said. “We provide them with a realistic understanding of what it takes to build a product.”
Sometimes companies have to learn to delay their focus on revenue generation, Mr. Oparah explained. Build a good product, then validate it through user acquisition. Then you can focus on monetization.
A final challenge Mr. Oparah cited was traction.
“Entrepreneurs build, launch and go back to investors for the next round, only to hear they should come back when they have more traction.”
“Investors want them to demonstrate growth so we employ a more coordinated approach to convince investors it is growing but for the right reasons.”
