Last week, I was browsing for venture capitalist, who would be willing to invest into my new product line.
The way, the VC work is that though they call themselves Risk Investors, however, generally, they invest into water tight already invested biz, which is making cash profits and has only issue of funding to scale up the supplies. Then they jump and take the opportunity. Rarely, does a VC support the biz model from a drawing board stage to Global scale ability stage.
Interestingly, despite the diligence into biz models and funding, most of the time biz fail as some of the simplest issues are ignored.
Here is an interesting case : A German Nano venture invested into a Denture Biz as below
Where Students of Singapore University designed a special bio polymer to replace the steel wires conventionally used on the dentures.
Well, the students certainly need to be applauded to create this unique piece . Super Invention Indeed.
However, for a nano VC, whether this makes biz sense, one has to really think "n" times.
The denture USP is the white biopolymer which replaces the steel wire and hence the color merges with the teeth. However, the simplest of the solution is to take Silk yarn, twist it and then take calcium substrates and from within the calcium block run the twisted silk yarn .
Silk is a protein yarn, hence no issues of foreign body , again calcium is the same material as that the teeth are formed, hence again no rejection issues. Plus the color merges with the teeth color.
Silk has same strength as that of steel and besides that it is highly elastic. This gives ductility to give a form as required.
The Silky Denture will cost not more then USD10 per piece and will have a global market, with no issues of cyclic sales or cash flow constraints and strong positioning in the market against steel dentures or biopolymer dentures.
But surely, no VC supports such a simple solution. But, if you show enough complexity, which is barrier to entry for others, then without looking at the simple competition, which can displace the investment, the VC justifies all its investment with supporting high tech arguments and global sales and unique positioning in the market etc etc till it finds out that an ingenious Chinese has come out with a simple solution of the same copied product.
Well the same VC, did it not even bother to reply my email , because my solutions are Intelligent , Simple, Low Cost and Scale able and does not pass VC funding Criterion.
The way, the VC work is that though they call themselves Risk Investors, however, generally, they invest into water tight already invested biz, which is making cash profits and has only issue of funding to scale up the supplies. Then they jump and take the opportunity. Rarely, does a VC support the biz model from a drawing board stage to Global scale ability stage.
Interestingly, despite the diligence into biz models and funding, most of the time biz fail as some of the simplest issues are ignored.
Here is an interesting case : A German Nano venture invested into a Denture Biz as below
Well, the students certainly need to be applauded to create this unique piece . Super Invention Indeed.
However, for a nano VC, whether this makes biz sense, one has to really think "n" times.
The denture USP is the white biopolymer which replaces the steel wire and hence the color merges with the teeth. However, the simplest of the solution is to take Silk yarn, twist it and then take calcium substrates and from within the calcium block run the twisted silk yarn .
Silk is a protein yarn, hence no issues of foreign body , again calcium is the same material as that the teeth are formed, hence again no rejection issues. Plus the color merges with the teeth color.
Silk has same strength as that of steel and besides that it is highly elastic. This gives ductility to give a form as required.
The Silky Denture will cost not more then USD10 per piece and will have a global market, with no issues of cyclic sales or cash flow constraints and strong positioning in the market against steel dentures or biopolymer dentures.
But surely, no VC supports such a simple solution. But, if you show enough complexity, which is barrier to entry for others, then without looking at the simple competition, which can displace the investment, the VC justifies all its investment with supporting high tech arguments and global sales and unique positioning in the market etc etc till it finds out that an ingenious Chinese has come out with a simple solution of the same copied product.
Well the same VC, did it not even bother to reply my email , because my solutions are Intelligent , Simple, Low Cost and Scale able and does not pass VC funding Criterion.
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