Central to the startup is the technology being developed. Developing this innovation must be the core strength of the founding team. Its what will ultimately define them. Developing a great technology is necessary but not sufficient. Complimenting the technical development of the innovation are several key supporting functions:
– Storytelling / Selling: Strong sales capability is essential to ensure the company can generate interest from strategics, customers and eventual acquirers.
Capital Raising: Without fuel in the tank, the venture goes nowhere. Raising capital is a learned skill and most entrepreneurs will never do it enough to really master it. There are ways to hack this function.
Staffing and Operations: Operating skills are also not inherently something technical founders do well. You can hire management consultants, but they tend to tell others how to operate versus doing it themselves. Moreover, experience in large corporations almost never translates to startups, They have different DNA.
There are other important functions, but these three areas represent where we see 95% of the failures in startups. Certainly the technology can fail, but as the technology matures the onus rests more and more heavily on these three areas.
The AngelMD team has helped hundreds of companies over the years in each of these areas. In many cases, we have identified people and tools in the market that can shore up some of these needs. In other cases, we have developed our own tools where we felt the market options were lacking.
Alpha Creative was formed to help startups capture their story and convert it into digital assets to share the story. In an increasingly digital world, these assets are essential. We didn’t form the firm because we thought it was a significant money-making opportunity. Instead, we formed the firm because we saw that more creative agencies either focus on larger clients or they don’t understand the nuances of healthcare. Again, agencies generally don’t recognize that startups are not just a small company…they have unique DNA.
Over the next 6 months, AngelMD will be unveiling the framework for a Premium Membership for startups. The membership will provide access to tools, education and community to help reduce risk and propel the venture. We are launching the offering in increments because we only want to bite off as much as we can chew.
We encourage every entrepreneur to focus their efforts where they are most critical and leverage others to handle the rest. Your core team should be strongest around your technology development. The areas noted above can be largely outsourced or augmented to minimize your distraction from the mission. Focus and specialize.