It’s The Business Model, Not The Product:

“If you think everyone does this and I’m being cranky, join me on my analyst rounds. Just in the last week I spoke (so far and it’s only Tuesday) to five firms (two of which aren’t really companies yet). Only one of them could be said to have a proper business model and they came to it after five or six years doing something else (related) which they could see wasn’t going to be very interesting (read: profitable). The two groups I spoke with who aren’t firms yet, just ideas (but talking seriously about funding) have all the usual problems: can’t figure out who their “real” customer is; don’t understand how buying decisions are made or funded in the relevant markets; think there’s no competition because they believe something would have to be identical to their idea to be competitive.”

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