How investors look at you

The story.

I was a teenager in the late 60-ties with plenty of time on my hands and very little money. Beatles were hot and vinyl was expensive. Couldn't afford tape recorder either. One day I noticed an article in one magazine explaining how the tape recorder works. It was showing a simple diagram with 3 parts - magnetic head, amplifier and speaker. Wow, I said to myself it, why don't I buy those 3 parts and build a tape recorder. In the process I have learned that there are thousands of other parts going into the tape recorder and I gave up on the idea as quick as I have embraced it. Hey don’t judge me I was in my very early teens.

The repetition.

I have noticed that many venture capitalists look at businesses the same way I looked at the tape recorder diagram. They look at revenues, expenses and profits and do not see the many parts a business is made of. That's why the role of the people who know is extremely important as it is for the venture capitalists to put the right management team in place.