Doomed business ideas. The view of investors.
Business angels and venture capital fund analysts are inundated with countless ideas for the business. Undoubtedly, many of them are worthy of attention (statistics speak only of 10% of the total volume of business projects), but there are outgoing, stupid and absolutely ridiculous projects that no sane person will undertake to finance.
Venture business has its own characteristics that not all entrepreneurs who dream to realize themselves in this direction can understand. The industry specialization of the fund, in principle, makes it impossible to finance certain projects, in addition to everything, often really absurd fantasies are sent.
The following are stories of business angels that describe the most egregiously insane ideas.
One wise man said that you need to limit yourself to stand out. The same project was conceived so comprehensive that it resembles chaos. This is a very popular mistake of inexperienced businessmen. The Runa Capital fund noted a business project, according to which it was planned to create a mega-large search portal that contains a lot of search queries – from drugs to booking hotels and restaurants, from the labor exchange to the discount aggregator, from the online store to the social network, political parties and blog hosting. In a word, a hash.
A start-up team of three was supposed to support this resource, oriented to the south of Russia, Ukraine and India. Such ideas are often lit up by unfortunate entrepreneurs in different parts of the world. Softline Venture Partners experts have faced the same kind of project where users supposedly could get the widest range of services.
Fund employees were interested in what are the advantages of such portals and how they will manage to replace the entire Internet, but there was no answer. It was also not clear why to create such a clumsy giant. Nobody could provide the business plan itself, they sent only a picture in the simplest Paint format. This figure was supposed to impress analysts with its hyperfunctionality.
If the startup cannot express his thoughts clearly and in accordance with generally accepted requirements for the project, then there can be no talk of any implementation of the idea.
The business angel, Vyacheslav Davydenko, shared a no less curious story. He received an “interesting” proposal for investing in a 4th generation social network. Of course, for sure, someone knows what kind of social networks of the previous 2nd and 3rd generations.
Like the most professional secret agent, the developer of this project did not bother to share the details of his idea, did not even touch on the meaning of such an undertaking, but merely hinted that four independent specialists were involved in the development of this creation, unable to communicate with each other and not representing anything about the tasks, which are delivered to other developers. The task setting for each artist was handled by the miracle-star himself.
All the information fit into a short message that spoke about plans to create a social network that has no analogues. The startup stressed the impossibility of disclosing information about the planned opening, but positioned the new resource in such a way that it would not only become popular, but would take away the majority of the audience from the most popular existing Internet projects – irr.ru, vk.com, avito.ru and the like. The projected launch period of the network was 5 months, the requested amount for the implementation of this secret resource was two million rubles.
Runa Capital Venture Fund did not reward a brave businessman with such an investment for several reasons – this project belongs to the “niche” and is not included in the range of interests of the fund, since it is impossible to compare the scale of the idea with profit. First of all, a startup should offer a new and effective solution to a specific need, a task that is in great demand in society. Only in this case, the business expects success.
Temnarik met on the way of Ilya Pavlov, venture partner of Bright Capital. Does anyone need a flashlight that shines in the dark? And who will apply such a phenomenon? There is no targeted rationale and just a direct consumer. Unless the name is more than memorable.
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