Beating or beeing the Gorilla

A male silver-backed gorilla looks at the viewer with folded arms. Looking back on the bursting of the dotcom bubble in the years 2000 and 2001, one can deduce some lessons and parallels for today. But I strongly believe, that we're in terms of internet and tech business not in a 2018 bubble at all. There're other bubbles around for sure.

  1. Some companies have invested in the market without market analysis or due diligence.
  2. DD has also failed in the analysis and composition of the C-level teams.
  3. Some investors have fattend up the start-ups with funding, with the result that some of these companies have spent a lot of money on poaching each other's talents and wasted even more resources on lavishly parties or release days without having a product or at least a minimum viable product.

Interim conclusion

buildItFirst

Status quo in fundraising

Track record and/or insider status, from the full scoop

If you are a classic outsider without history in the industry category in any area of fundraising, especially in the tech area it is often not comprehensible how much some insiders can retrieve with track record, even though there is perhaps only a vague idea of a new project. In the result there are large financing rounds without product or traction, high number and comparatively expensive employees and an excited professional and mainstream press.

No track record and/or outsider status, basic work

  1. One should not waste time and compare oneself with the larger competitor. The focus should be on the product, service or solution of a scalable problem. First figures and economic successes of the MVP should be visible: customers and traction. If you are forced in the early phase to set up the company nice and lean, clean, data-driven and precisely, you can certainly keep up with overfinanced, sometimes astonishingly slow and lush C-level founders and serial entrepreneurs, even surpass them by agility and beat the gorilla (Goliath).
  2. In war, as in start-ups, a guerrilla tactic can be waged on the ground. This can cause shock and awe when competing or fighting in order to stay in the picture, and can dissolve the air superiority by a funding in the billions. A success (by filling niches, late investment rounds or an exit) usually comes with many years of hard work, a daily struggle for survival and requires a committed team and a clear communication of the vision of the management team to all team members.

The answer to the question "Beating or beeing the Gorilla" can be answered differently as two sides of the same coin. Those who do not remain “agile and flexible” and are prepared to challenge their company disruptively can fail with both methods of company building.