Digital Disruption: How It Changes A Business

What exactly is Digital Disruption?

Today digital technologies are influencing the evolution of successful business models.
Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

Digital disruption has already happened and will continue happening; changing the way business interacts with customers and each other.
Here are some instances of business models evolved from digital disruption:

* Most popular media owner creates no content (Facebook)
* Worlds largest taxi company owns no taxis (Uber)
* Largest accommodation provider owns no real estate (airbnb)
* Largest phone companies own no telco infrastructure (Skype, WeChat)
* Worlds most valuable retailer has no inventory (Alibaba)
* Fastest growing banks have no actual money (SocietyOne)
* Worlds largest movie house owns no cinemas (NetFlix)
* Largest software vendors don’t write the apps (Apple & Google)

 

Check out this video
Digital Disruption: Unleashing the Next Wave of Innovation

Top 10 Investors’ Investment Criteria

Investor’s investment criteria in rough order of importance for all investors

Source – Harvard Business School Division of Research

  1. Enthusiasm of entrepreneur

  2. Trustworthiness of the Entrepreneur

  3. Sales potential of the product

  4. Expertise of the Entrepreneur

  5. Investors liked entrepreneur upon meeting

  6. Perceived financial reward

  7. Growth potential of the market

  8. Quality of the Product

  9. Niche Market

  10. Track record of the entrepreneur

Invest

Angel groups expose entrepreneurs to a wide set of potential investors. At NewGate Capital Partners, our structured process facilitates a relatively quick and efficient investment decision. We provide insight through ongoing coaching and mentoring from seasoned entrepreneurs and executives.

 

For more info check out this guide Angel Investing 101

Want to know more? visit us at http://www.newgatecapitalpartners.com/capital-angels/entrepreneurs/

 

For the Complete list look below:

 

Investors' Investment Criteria HBR

 

 

Why That Ex-IBM Exec Could Be One Giant, Cash-Guzzling Liability to Your Startup

Picture this.

Young, starry-eyed startup founder comes in to pitch investors for funding.

He clicks crisply through his deck. He describes his product (patent-pending, of course), its features, benefits, and how 1% market share is enough to place everyone in the company on the Forbes list of richest people in the world.

Then the team slide comes up on the screen and the entrepreneur puffs up his chest, clears his throat, and announces that (just so you know) the CTO (or some other C-Suite position) of the company is an ex-IBM executive (or an ex-HP executive, or any other big, public company).

He pauses and looks around the room proudly. Almost as if he was expecting a standing ovation.

Oh, by the way, the company has raised $20 million so far, burned more than 50% of that on overhead (logo design, focus groups, salaries, and such), and hopes to have a minimum viable product in 24 months. Just as soon as this round of funding is completed.

See any problem with this picture?

Several actually. Let’s address just one today.

If you haven’t taken your product and service to market, if you do not yet have product-market fit, hiring an ex-Google COO to impress potential investors will almost certainly spell doom for your startup.

Here’s why.

One, your startup IS NOT a smaller version of a big, public company (HT Steve Blank). Your social media startup and Facebook are two totally different animals. One is a cute, needy kitten; the other is a full-grown lion. Your startup (the kitten) has different needs and needs a different set of competencies than a fully-functioning company.

Second, drawing from one above and quoting Ben Horowitz in his must-read book, “the job of a big company executive is very different from the job of a small company executive.”

To a big company executive (used to big budgets), that $2 million you plan to raise to take your product to market is just furniture allowance.

Former big company executives come with big company habits that could be deadly to your startup. Habits like sending everything to focus groups, analysis paralysis, bureaucracy, ego mania, and waiting for things to happen instead of making things happen (among others).

Bottom line: buyer beware.

Yes, you might need an Eric Schmidt or Sheryl Sandberg for adult supervision, however, hire one with your eyes wide open and only when your startup has taken off and is approaching cruising altitude.

Investing in Startups has Increased Significantly Over Recent Years

Investment changes you should be aware of

Rock The Post’s 2013 Investor Trends Survey reveals interesting insights into the changing investment landscape and investment
attitudes among private investors today compared to 10 years ago. Upcoming regulatory changes with the JOBS Act will further
shape the investment world, allowing investors to invest in private companies for the first time in 80 years regardless of income
or net worth. The Investor Trends Survey also identifies some key characteristics of experienced angel investors ? those who
have experience investing in startups ? compared to non-angel or novice angel investors.
This special report contains a selection of the insights from Rock The Post’s 2013 Investor Trends Survey, including:

  • Investor portfolios consist of 15% more alternative investments now than 10 years ago
  • Experienced angel investors have a lower percentage of mutual funds in their portfolios than novice and non-angel investors
  • Investors are relying less on intermediaries to carry out their investments and more on direct investing methods
  • The availability of investment tools, such as online trading platforms, and investors experience with direct investing are the main reasons they are encouraged to manage their own portfolios.