We are looking for two new team members to join us at Tech-Rx! If you know anyone who you think would be a good fit as a Managing Partner or a Business Analyst, send them our way.
While Steve is the current Managing Partner, we are looking for an additional Managing Partner to help run the organization. Think of this position as the “number two” role at Tech-Rx. As a key executive in an early-stage startup, buying into our vision here at Tech-Rx is key. Know someone with a keen understanding of the startup world from a business, finance, and strategy perspective? We would love to chat with them about Tech-Rx.
The Business Analyst position offers a one-of-a-kind opportunity to explore the startup world from a business, finance, and strategy perspective. It is a great opportunity to build experience as Tech-Rx provides deep exposure to what actually has and has not worked for companies – not just their lofty hopes and aspirations.
We are always interested in hearing from those that share our vision that “All innovations, big and small, propel society forward” and our mission “To boost the rate of innovation by rescuing endangered technology.”
-Nikki Griggs, Business and Marketing Associate, Tech-Rx
Over the past few days, there has been a lot of chatter about the absence of a co-founder being conditional of failure. Ed Zimmerman seems to feel the same way. Read his blog post to learn the importance of having a co-founder and why he looks for them in his investments. Not only does he look for co-founders but co-founders with chemistry and a history. Read the entire blog here
What failing startups have in common seems to be a popular topic. After seeing Erin Griffith
‘s post on Tuesday
, Business Insider
‘s Alyson Shontell
agreed on the reasons of what failing startups have in common. Read the full article below or check it out on Business Insider
“Steve Hogan has a special job in Silicon
Valley. His firm, Tech-Rx
, is hired to save startups
that are circling the drain.
PandoDaily’s Erin Griffith interviewed Hogan and asked him for the most common reasons startups fail.
Surprisingly, running out of money wasn’t cited as reason number one. It’s third.
Instead, only having one founder
is the most common reason Hogan says startups die. Running a company alone is much harder and more stressful
than it seems, and it’s especially unusual for a startup to succeed with just one person behind it.
Reason number two: forgetting to ask, “Who’s going to buy this?” before launching. Freemium models are often the fall-back business
model, but if a founder doesn’t have a truly amazing product, no one is going to buy an upgrade for it. “Unless you can get paying customers, you are probably going to die,” Hogan tells Griffith.
Finally, running out of capital is a sure way to kick the bucket. Hogan says he sees a lot of startups get 90% of the way there then run out of cash, and it’s often because they didn’t raise enough during their last round and plan for enough runway.”
posted an article titled, “What do failed startups have in common?
” As a result, there was a lot of interesting feedback, but for the most people agreed on the number one reason. One of our partners, Steve Hogan, is quoted throughout the article on startup failure commonalities. Read the article below or check it at PandoDaily
“Steve Hogan has seen a lot of startups struggle. His firm, Tech-Rx
, aims to save as many of those as possible because, in his words, “all innovations are ultimately good for society.” We published a profile of Hogan and his firm yesterday, find it here
The top thing failed startups have in common, Hogan says, is that they’re sole founders without a partner. “That is the single biggest indicator of why they got in trouble,” he says, adding that it’s especially common for sole first-time founders to fail.
The second biggest factor? No one looked into potential buyers before they built the product. He’s not talking about exits — he’s talking about customers. Founders don’t ask themselves who is going to pay money for the product. “We see lots of freemium strategies,” he said. ”Freemium is freemicide. Getting someone to upgrade from a service that is adequate and free never works.” Which is sort of the point. “Unless you can get paying customers, you are probably going to die,” he says.
The third most common factor is that the company ran out of time. “They got 90 percent of the way there building their product and they ran out of money,” Hogan says. An engineer since 1968, Hogan knows the tendency of engineers to underestimate how long it will take to build something. He often sees companies in desperate situations because they didn’t give themselves enough breathing room with their initial fundraising.
As an addendum to that one: Hogan believes founders often misinterpret Minimal Viable Product, a philosophy which decrees that software — no matter how bare bones — is shipped early and updated often. The startup philosophy is so revered by entrepreneurs that entire companies
are being built around it. But it can be dangerous to young startups that have one chance to make a positive impression on users.
Often founders have a different idea of what minimum viable product is for consumers compared with what it is for them. The people building the app get into the mindset that they are the typical customer for the product, assuming that if they understand it, all customers will understand it. That’s rarely the case. And focus groups aren’t enough to go on either, Hogan says. “Look at the Groupon Superbowl commercials
. The focus groups loved it, and they almost got burned at the stake!””