Monday, January 10, 2011
Insights and Opinions: Seek Investors Aligned With Your Interests, Not Their Ego
For today's Insights and Opinions section, we have an article from John Greathouse, of Rincon Venture Partners, who talks about why you should look for investors who are aligned with your interests, and not their egos.
In the early 1970s, the Seven-Up Company devised an ingenious plan to market its flagship soda. The campaign was so successful it eventually catapulted 7-Up's sales to rival that of both Coke and Pepsi, making it the third most popular soft drink in the US.
The company hired the Dominican actor Geoffrey Holder, who delivered the commercial's signature tagline with memorable panache, “Maaarvelous, absolutely maaarvelous.” Overnight, “maaarvelous,” spoken in an exaggerated Caribbean accent, became a national catchphrase.
What made the commercials noteworthy was not their charismatic pitchman. It was the fact that the Seven-Up Company defined its product by describing what it was not, via the “UnCola” label. When evaluating a potential Institutional Investor, entrepreneurs should consider what they are not, as much as what they are. Entrepreneurs in search of startup capital are well served to seek an UnVentureCapitalist (UnVC), an investor who understands and appreciates the unique benefits of capital efficiency. (More...)
Read the rest of John's article, Seek Investors Aligned With Your Interests, Not Their Egos.