Even for those far removed from the VC world, the session provided numerous insights for business owners to consider as they head into the New Year. Here are five takeaways that resonated with me:
#1 – 2010 will be another challenging year, but positives have emerged
Most of the panelist felt the upcoming year would be challenging on a number of fronts – continued economic uncertainty, funding sources still tight, potential non-VC friendly changes to the tax code and fewer appealing investment exit strategies. On the positive side, the panelists felt the paralysis that existed earlier in the year had lifted – “the options may not be great, but at least decisions are being made.” The shakeout on the funding and startup fronts left a pool of strong survivors. Additionally, the slowdown has necessitated a sharper focus and more strategic planning.
#2 – Show me the data
Long gone are the days of an idea, a PowerPoint presentation and the “we only need 1% of this huge market to be successful” mentality The VCs indicated investors increasingly seek more and better market intelligence, specifically as it relates to customers and distribution channels. One panelist stated, own the data and “cloak yourself in credibility.” That’s great advice for any businesses, whether pitching investors or new customers. (Note to CompTIA members: Don’t forget to take advantage of the market research benefit of your membership!)
#3 – Embattled and entrenched sectors are ripe for disruptive innovation and big returns
Sure, the VCs were speaking from a macro investment perspective and disruptive innovation is hardly a new concept. But on company level, executives should ask themselves “what is the seemingly most overwhelming problem we face and what are we doing to creatively address it?”
#4 – VC tech bets in the short and mid-term
The panelists discussed many areas they expect to evaluate. Here are a few of the more compelling mentions in the tech space:
- All things wireless and mobile
- Data plays (finding, using, combining data sources, etc.)
- Security
- Business analytics
- Localization
- Elder care
#5 – Keep the hype in check
“Hype” also found its way into a number of discussions. Areas the panelists felt were generally in a position of short-term expectations getting ahead of the market include, cloud computing and social media. This sentiment brings to mind Amara’s Law, or the theory that the impact of a new technology is overestimated in the short-term, but underestimated longer-term. For channel partners, this may mean being realistic with expectations with certain emerging technologies, while preparing your business to take advantage of a possible greater opportunity longer-term.
That is the view from here. If you have an opinion or addition, leave a comment and let us know.
