« Euro VC Down Slightly in 2Q06; Deal Size Increases | Main | alarm:clock Turns Two »
July 17, 2006
No Obvious Business Model Required Says Grinda
Fabrice Grinda, a European serial entrepreneur who is also a business angel, says he is relaxing one of the basic requirements for funding a new venture, namely the need for a business model to be clear from the start.
In his blog, he writes: "as long as the idea has massive mass market appeal, I am now willing to start businesses where the business model may not be clear and understood from the get go."
Grinda's investment thesis is based on his ability to accept a high level of risk and the fact that requiring a valid biz model would have meant that Google would not have been financed in the early stage, nor would Facebook. And MySpace would not have been acquired by News Corp. (the a:c euro notes that while Google has found a big bang biz model, the other two are emerging and searching to find comparable ways to capitalize on their popularity).
Grinda's track record: created Zingy, a ringtone and mobilephone wallpaper download service (similar to Jamba), which was acquired for $80M and prior to that he founded Aucland, an eBay clone, which was acquired by QXL Ricardo.
Read - Top 9 Business Selection Criteria
(Fabrice Grinda's blog)
Read - And then there were 8 business selection criteria!
Posted on July 17, 2006 08:01 AM | Posted to entrepreneurship | Permalink
Trackback Pings
TrackBack URL for this entry:
http://www.thealarmclock.com/mt/mt-tb.cgi/1592
