They say that ideas are cheap. (Lots of people say it now, but I refer to Charles Eames the famous designer of course.) They are right, ideas are cheap, it all comes down to the execution. So then why haven’t all of these cheap ideas been built? I have a theory. I believe that ideas are cheap to those who come up with them. Serial entrepreneurs come up with ideas all the time. I know I do myself. But these same people that have the ideas are very often working on something else, the last great idea they had. What happens is those that have the will power and drive are already working on hundreds of other projects. In comes the idea of reverse ventures.
In the typical Venture Capital setting, entrepreneurs with great ideas are coming to look for funding for their great ideas. It continues this cycle of cheap ideas coming in with serial entrepreneurs who build their ideas and hope it pays off. It cuts out those who may have the skill set, but not the know-how or ideas to start something on their own. But what if instead of giving out capital, a VC was giving out ideas. I see it working something like this:
– Someone who has the drive to build something but needs the idea and support comes to the VC. We’ll call them the builder.
– The VC matches the builder with an idea, pitches it and adds all the details that go with it. Basically, give them the napkin idea.
– Now it’s up to the builder to go out and do it. Along the way, the seasoned entrepreneur (will call them the VC in this case) that had the original idea can provide support, think through problems and in return gets co-founder status and 30% of the company.
Ideas are cheap, they only cost you 30% of the company. If you execute, you can make it big. Even the losers aren’t actually losers though, they are able to gain valuable experience through building a product.
So, do you have skill-sets? Web or product design or iPhone app building skills? Come talk to me. Or are you entrepreneur with lots of ideas and not enough time to build it all, come join me. I’ll be building out the brand so keep an eye on this space for more news. As Eames said, “Ideas are cheap”, let’s see if I can execute on this one. =)