Top ten new rules for entrepreneurs and investors

The game has changed according to Bill Reichert, managing director of Garage Technology Ventures, a seed-stage and early-stage venture capital fund based in Palo Alto, California.

Building a company is no longer about creating wealth as quickly as possible and looking for a fast, lucrative exit. It’s about creating value. Think Facebook and Twitter, says Reichert.

And there’s no point in being first in a market. The most successful companies are those which create value on the back of someone else’s innovation.

Reichert spoke at an evening event in Auckland, hosted by the University of Otago, NZVCA and AANZ, on his way to Waitangi where he will be a keynote speaker at Morgo, the entrepreneurs’ love-in founded by Jenny Morel of No 8 Ventures fame.

Here are Reichert’s top 10 new rules for entrepreneurs and investors.

1. Fundamental objective

Old rule: Create wealth
New rule: Create value


2. Getting started

Old rule: Find a brilliant founder
New rule: Build a brilliant team


3. Sharing the vision

Old rule: Craft a mission statement
New rule: Craft a mantra


4. Management style

Old rule: Plan the work, work the plan
New rule: Get in the game


5. Business model

Old rule: Raise venture capital
New rule: Bootstrap – stay lean and be scrappy


6. Foundation of innovation

Old rule: Good old Kiwi ingenuity
New rule: Good new global knowhow


7. Competitive advantage

Old rule: First mover advantage
New rule: Fast mover advantage – be nimble, be quick


8. Marketing strategy

New rule: Build it and they will come
New rule: Everyone sells


9. Pace of change

Old rule: The pace of change is accelerating
New rule: Change takes time – plan for continuous upgrading


10. Source of innovation

Old rule: Technology drives innovation
New rule: People trump technology

Find more at garage.com