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Investors Fear Lack of Commitment from Founders

When it comes to translating technology into business, there are numerous challenges to overcome. These challenges include uncertainty in market demand, finding the right team, acquiring the first client, and justifying the risk with a strong business incentive.

One common issue is the lack of hard data to prove the benefit of a new solution, which must outweigh the cost of transitioning from existing platforms or technologies. Even successful technology businesses like Uber and Amazon face challenges in profitability.

Founder Commitment: A Critical Factor

An investor’s biggest fear is often the doubt surrounding a founder’s commitment to the success and vision of their venture. Many founders seem to treat their startup as just one of many eggs, ready to move on to the next idea if it fails.

Additionally, a lack of knowledge about competitors and market trends can deter investors. Commitment to understanding the market and competitors is crucial for success.

These factors, along with others, must be carefully considered to navigate the challenges of bringing a new technology to the market. Commitment is key to overcoming these obstacles.

Changing Mindsets for Success

Successful venture creation requires a shift in mindset for both founders and investors. It is crucial to establish mutual understanding and commitment from the beginning, as persistence and patience are essential for success.

Reducing risks, such as lack of commitment, and maximizing benefits through mutual understanding and patience can increase the chances of success in translating technology into viable businesses.

Investors face these challenges, but breakthroughs where technology aligns with a strong business plan and committed founder are rewarding and promising.

More time than anticipated is often needed for the development and commercialization of new technology, emphasizing the importance of patience. By filtering investments based on commitment levels, investors can ensure more restful nights.

Image Credit: Iben Kønig

This article was first published on September 22, 2019

The post If there is one thing investors are afraid of, it is lack of commitment from founders appeared first on e27.


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