Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, the newest blog addition to the Milwaukee Journal Sentinel covering start-ups and other Wisconsin technology news.
Paul’s most recent contributed piece “Home Run Hitters Take Home Run Swings” can be found under their Business Tab in the Business Blog section. Click here to view his latest blog.
Here is a short excerpt:
“Entrepreneurs outside of the major venture centers generally have fewer financing options than their venture center counterparts. Investors are scarce, farther apart, and have shallower pockets. Understandably, this makes many of these entrepreneurs very careful about controlling their burn rate. Which is good. Well, mostly.
Being frugal has obvious advantages for entrepreneurs with limited access to deep-pocketed venture capital resources. Most startups that fail do so when they run out of money (though – a topic for other places – in my experience the proximate cause of running out of money is usually management-related). Ergo, spending less prolongs survival which, all other things being equal, increases the chances for success.
Alas, all other things are not equal. The problem with the “save money to succeed” model is that most entrepreneurs who hit home runs do it by taking big swings: which is to say, among other things, that when the right pitch comes along they go after it with everything they have. Wait for the pitch, of course: but when you see it swing away. There is, to try another metaphor, a time to cut bait and a time to fish.”
Click here to read more of Paul Jones’ OnRamp Labs blog post located under the Business tab of the Milwaukee Journal Sentinel’s website, www.jsonline.com.