photo credit: Kevin Krejci
Many entrepreneurs only focus on bleeding-edge, burgeoning markets when developing their technology, product or service offering. This is done for various reasons including:
* The perception that burgeoning markets have limited competition,
* The ability to establish an early foot-hold to increase the value of their company, and
* The reality of the difficulty in developing a differentiated, long-term competitive advantage in large established markets.
This article outlines why this market approach is generally too risky for many venture capitalists and then provides five reasons why venture capitalists prefer large established markets over bleeding-edge, burgeoning markets. (more…)
