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The Venture Value Chain. Innovation. Shape. Launch. Scale. Refine. Harvest. Shape. Begins with a domain expert who identifies a market need and a solution Iteratively shape and reshape opportunity New company is not yet formed… But significant $ and time are invested
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The Venture Value Chain Innovation Shape Launch Scale Refine Harvest
Shape • Begins with a domain expert who identifies a market need and a solution • Iteratively shape and reshape opportunity • New company is not yet formed… • But significant $ and time are invested • Research validates opportunity
Launch • Company is legally formed and initially funded • Founders quit day jobs • Moves from stealth mode to broader public • Founders seek informal financing to prove product concept and market appeal
Scale • Only after proof-of-concept is proven(customers will buy; product performs as advertised) • New venture is qualified for larger rounds of financing • Build out staff and infrastructure • Can consume LARGE amounts of $
Refine • Venture should now be consistently cash-positive and self-sustaining • Focus now less on growth (scale stage) and more on operational efficiency • Fine-tune day-to-day operations • Produce high-as-possible market valuation
Harvest • Get a return on your and your investors’ investments • IPO, M&A, cash cow