‘What are investors looking for today?”
“What do serial entrepreneurs search for in a great idea for an awesome startup?
This are two great questions, ones often in my email. Asked daily around this planet.
So let’s quickly jump into the answer, by using two examples from real companies.
One shut down. The other is growing.
Cruncbase 2017 December 11
Gadget renter Lumoid closes
Lumoid that rented out consumer electronic devices like drones and cameras, has shut down. The San Francisco-based company, founded in 2013, previously raised about $5 million in venture funding.
Wall Street Journal 2017 December 11
Rwanda Drones Deliver Medical Supplies
Such services help people in isolated regions—and could yield lessons for making shipments elsewhere.
Let's see which startup has WOW!
- Vitamins or Aspirin: Which startup is focused on solving the most painful problem? One is life-saving. The other is a nice-to-have.
- Focused: Which company is narrowly focused? Which appeals to a wide range of customers and products?
- Bold: Which jumps out as “bold?" Which seems “safe?”
- Compelling: Which triggers your emotions? Which is just interesting?
- Buzz: Which excites people to share on social media? Which is rather mundane, even boring?
Add up the scores and what do you find? One startup has “WOW!” but unfortunately the other does not.
When your startup idea has WOW! people will get so excited about it, they can't wait to start tweeting, messaging and social media posting.
Without WOW! you should stop. Even if you could get started, that idea won’t get you far. The guys renting air mattresses quickly figured that out wht would get WOW! (Airbnb).
Instead, pause and think. What idea would have WOW! in it? That’s worth a lot of time and effort to get right.
BOTTOM LINE: Great startup ideas have WOW! Industrial or consumer, high or low tech, anywhere in the world, the greats have it – or quickly figure it out and instantly pivot to get it. Best is to figure it out before you launch your first product or service. Get it right. Then go for it!
I wish you The Best on your Adventure!