Marc Suster interviewing Bill Gross, an awesome entrepreneur that has founded 75 companies through Idealab with 30 IPOs and acquisitions. Living proof that an entrepreneur can have his hands in many projects at a time. You just have to find the right model to make it work. Idealab took a unique approach to incubating - very different from what Y Combinator and TechStars are doing today.
Here are some insights recapped:
- If your product is early to market, stretch your capital, so you can survive until the market is ready for the product
- Don’t be greedy about your valuation. Find the right investment partner (someone that believes in you and your product) at the right time. “Dilution doesn’t matter…success matters.”
- Out execute the competition by (1) having faster turns on knowledge, (2) be more open (i.e. listen more), (3) adapt to what the market wants faster than your competitor
Striving entrepreneurs should keep Idealab in mind as viable incubators. Since its founding, Idealab companies have mostly been ideas generated by Bill Gross and team, but they are now starting to fund outside ideas and bring them in.