According to Wikipedia, a business is “owned and formed to earn profit to increase the wealth of owners.” When looking at a business my immediate concern is always trying to determine how much profit the business can create and how fast it can create it. If your firm is producing revenue I want to know who you are making revenue from, and how many more customers you can reach. If you aren’t earning revenue I want to know who you could potentially reach and how much you can charge them.
Don’t get me wrong, I love technology and innovation. My igoogle page is littered with rss feeds from dozens of tech blogs while my laptop creaks with tens of beta applications. But personal interest aside, VCs need to invest in companies that can produce a liquidity event in a fairly short period of time. We are more than happy to plow capital into a firm to get there, but the destination needs to be known before we put our capital at risk.
2 responses so far ↓
1 Ryan Graves // Oct 27, 2008 at 3:35 pm
Aziz I love the mentality–can this biz make money, and how fast. People lose site of that reatlity now…Get with the program and get back to the basics…profit.
Love to chat about your experience with DFJ sometime!
Cheers.
2 Lucinda Jaconski // Feb 21, 2011 at 7:26 pm
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