Innovation

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Are Startup Innovators Born…Or Made?

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Are Startup Innovators Born…Or Made?

Todd recently had an opportunity to write an article for The Conversation on innovators. The article explored what if anything makes entrepreneurs and innovators different from other people. Madam C.J. Walker is featured as an exemplar of some of the important attributes and behaviors of innovators. Based on decades of research, the basic thesis is that there are no specific personality traits or DNA that entrepreneurs are born with; however, there are some abilities and behaviors that can be learned and practiced.

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Is Your Startup’s Measurement Just A Stick In The Sand?

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Is Your Startup’s Measurement Just A Stick In The Sand?

One of our family’s favorite museums in the world is the Royal Cabinet of Mathematical and Physical Instruments (en Deutsche, Mathematisch-Physikalischer Salon) in Dresden, Germany. The Museum sits in the impressive Dresdner Zwinger complex which houses a range of museums and performing arts facilities. A central theme of the museum is instrumentation—the collection of measuring instruments that have allowed us as humans to evolve and innovate over time. It is fascinating to think about how being able to measure things has enabled our progress as a society.

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Startups and Others, Beware the Bleeding Edge of Newfangled Technology!

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Startups and Others, Beware the Bleeding Edge of Newfangled Technology!

As you can imagine, we like to follow news about the Titanic. Thankfully have many followers who share updates with us as well. This week had some interesting news about the Titanic’s Marconi radio. In the roughly 108 years since the sinking, explorers have not been allowed to salvage/explore/ransack the ship (more on that later). But, a group is being allowed to cut open the vessel to extract the radio the ship’s communications crew used to contact passengers’ families. Oh yes, and nearby ships for help as well. The telegraph was newfangled technology to bring on board. 

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Industry Growth Patterns 3: Why Startups Should be Aware of the Hype Curve or Hype Cycle

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Industry Growth Patterns 3: Why Startups Should be Aware of the Hype Curve or Hype Cycle

So far, we’ve covered the Bass Diffusion of Innovation and the Crossing the Chasm models. There is one more industry or market growth model startups should know – the Hype Curve or Hype Cycle. Remember you may get either little or great traction, not just because of what you’ve done, but also because of what is happening in the broader market.

The Hype Curve or Hype Cycle is one of our more recent models, coined by research firm Gartner. In this model, markets experience initial dramatic growth. However, after the initial excitement or hype wears off, sales of the product drop as only enthusiasts and hard-core users in a niche market continue to purchase it. If competitors survive, the market settles into a lower volume than at peak. It’s smaller but still a respectable and sustainable level of sales.

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Industry Growth Patterns 2: Why Startups Should be Aware of the Crossing the Chasm Model

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Industry Growth Patterns 2: Why Startups Should be Aware of the Crossing the Chasm Model

Last blogpost we suggested that, in addition to all of the decisions they are making within their startups, founders should also track market growth. Most industries or markets go through typical growth patterns. Understanding if you are in the middle of the market’s growth stage or on the tail end is important. First, it helps in forecasting sales. But it also helps for appropriately planning the promotional efforts you will need to make. When a market has had limited growth, it often takes having multiple companies trying to educate the market. With low growth, you need more investments to offset competition.

We’ve already talked about the Bass Diffusion of Innovation model. A second growth trajectory was dubbed Crossing the Chasm by author Geoffrey Moore (1991).In these markets, the early growth and promise of a market stall until some intervention enters the picture…

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Industry Growth Patterns 1: Why Startups Should be Aware of the Bass Diffusion of Innovation Model

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Industry Growth Patterns 1: Why Startups Should be Aware of the Bass Diffusion of Innovation Model

Planning startup strategy leaves founders with plenty to think about. Getting proof of concept, hiring first employees, and knowing when to pivot are some examples. But startups should not lose sight of what is going on at the industry level. Industry growth can be a significant source of opportunity for startups, but also create major debtbergs that can sink them.

What should founders pay attention to in terms of industry trends and growth of the overall market? Often entrepreneurs want to think about a market in terms of straight-line growth that is linear over time. Unfortunately, market growth is typically more varied and hard to predict—particularly early in an industry life cycle, or in disruptive markets. Monitoring and understanding the industry growth trajectory can help startups better allocate resources and avoid debtbergs across oceans.

Industry growth variants are many and complex, and each market follows its own trajectory. However, three models roughly characterize different growth patterns with important strategic implications. They include:

1. The Bass Diffusion of Innovation

2. Crossing the Chasm

3. The Hype Curve

This is Industry Growth Pattern 1 and we will review the Bass Diffusion of Innovation model.

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The Many Shades of “Proof of Concept,” your PoC

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The Many Shades of “Proof of Concept,” your PoC

In a prior blog, we discussed the difference between PoPs (Points of Parity) and PoDs (Points of Differentiation). Now it is time to talk about PoC—Proof of Concept. While this seems relatively straight forward, there are actually many nuances to and perspectives on what constitutes “Proof of Concept.” Understanding how to frame and set expectations about PoC is an important discussion for the budding startup.

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It Takes a Village…or at Least a First Podcast!

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Well actually, it takes a venture ecosystem to help startups flourish. Our academic research  explores venture ecosystems and how founders can create positive momentum, even when they don’t have a lot of financial resources. The reality is that founders must rely on the help of many others in the venture community to get feedback

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How Startups can Navigate Around the Customer Value Void

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In study after study, the number one reason that startups fail is that they do not offer something new that better meets customers’ needs. See the details in our previous blogpost on product/market fit. This same factor is the biggest predictor of new product failure as well. We call this the Customer Value Void– not offering something that is needed, that is a better solution than the current practice, and that is worth paying for…


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Entrepreneurship is an “Uncertainty” Management Job that Evolves over Time

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People sometimes describe entrepreneurs as risk takers. They see starting a company as a risky activity. Yes, there is risk involved. But, navigating uncertainty rather than being risky is the essential task of the entrepreneur. What to build, how to build it, whom to partner with, whom to sell to, and how to fund growth… these are really tasks laden with uncertainty.