Arbus 200 - Chapter 5 Flashcards
(12 cards)
Venture Capitalist
investor who provides capital to companies with promising growth in exchange for equity
Venture Capitalist Investment Criteria
- compelling idea that solves problem
- large market for that problem space
- passionate team
- demonstrated market traction
3 components of a great idea
- compelling solution to problem (Pain Point)
- signifigant market opportunity or total addressable market
- intellectual property that is defensible
What is a “Pain Point”
specific problem that occurs somewhere along a customers path to purchase or us a product/service
Total addressible market
total number of potiental customers (e.g. everyone that would buy a cellphone in Canada)
Serviceable Available Market
The market a business can serve given its limitations capabilities (e.g. Bell, how many service providers you can get for your product)
Serviceable Obtainable Market
portion of the SAM that a business can realistically capture given its resources, capabilities and competitive landscape
What is Defensible Intellectual Property
proprietary (the right to own) and can be defended against competitive threats
What is Intellectual Property
intangible assets and designs that a business creates, and can be legally protected
What is Market Positioning
IP protection has a defensible competitive edge. comeptitors will find it difficult to copy business’s legally protected assets and move on
Why are patents helpful?
- safegaurd ideas, processes and products
- shows investors that the business has something unique
- base level of defense against copycats
- adds value to business
Why are patents not helpful?
- time-consuming and expensive to file
