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VC Cliché of the Week

This week I am going to talk about counting the chickens before they hatch.

In a market like we are in, it's easy to start doing the victory dance in the third inning. It's a bad idea.

Sure there are the occasional early home runs and they are great when they happen, but most often it takes a long time, up to ten years, to build something of real value in the startup/VC business.

And so when you hit a milestone like launching your first product, getting your first revenue, making your first montly profit, getting financed at a big valuation, going public, or some other meaningful moment, it's important not to lose sight of the fact that these are just milestones on a long journey.

The payday, particularly if you are shooting for a big one, takes a long long time. It's a marathon, not a sprint. Most people won't make the entire journey.

And as so many web 1.0 entrepreneurs learned the hard way, you can lose it all in a very short period if things turn against you.

So celebrate the milestones, but not too hard. When you count your chickens before they hatch, they often don't.

Comments (4) | Posted August 2, 2006 in Venture Capital and Technology

Comments

A good reminder, Fred. It can be easy to get caught up in the moment, and lose sight, even momentarily, of the end goal.

Keep your eyes on the prize, as I like to say. ;)

Cheers.
Scott

Posted by: Scott Burkett | Aug 2, 2006 8:18:04 AM

The ups and downs of running a business are incredible. It is almost impossible not to celebrate achievments, because when the downs come (and they always do) you need to hold onto something.

Posted by: EP | Aug 2, 2006 9:27:50 AM

Fred,

I love the VC Cliche posts. The phrase that is used ad naseum at my job (accounting) that drives me bonkers is "It is what it is."

Posted by: Bogie | Aug 2, 2006 8:52:12 PM

Every success is a milestone!! I will remember this all my life...

Posted by: Rajesh Segu | Aug 3, 2006 6:12:26 AM

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