Hype and strength: Draw a curve for your startup

Jules Maltz is a partner of the investment organization IVP (institutional Venture http://www.aliyun.com/zixun/aggregation/16861.html), Today in TechCrunch published a "Don't follow the crowd" article, which talked about the 2 x 2 think matrix and hype curve is very interesting.

"Whenever I have to face a new investment, I often look at the project with a 2 x 2 thought matrix." This is the technique I learned from Andy Rachleff, a partner in former Benchmark capital. ”

When a new startup is born, if everyone says you're wrong, you're wrong. In this case, you can not convince investors, the result is likely that the company died. It sounds awkward and disappointing, but the fact is that investment institutions really need to consider "public opinion and hype".

Jules Maltz said he likes two types of companies, and "hype" and "strength" for the direction of the axis of a picture:

The company standing at point A has technical strength, but not good at hype, such as Buddy Media,fleetmatics,rpx,palantir. Most are unknown companies, they are gems hidden in gravel.

Companies that stand at Point B have a reputation, and their names appear on various media, such as Twitter,zynga,square,foursquare. Popularity has become a counterweight to their success, but it can also leave the company disoriented. The hype over the blue dotted line is a failure.

And the middle of the dotted line is the most perfect track for startups, we all have to work towards this-speculation is also part of the strength.

Via TechCrunch

Source: http://www.ifanr.com/50001