Smashingly Great Ideas: If Only They Could Build Businesses...
(#musicindustry, #startup, #vc) This is sort of an evergreen theme amongst investors, but one that keeps getting painfully overlooked. Because all too often, a shining idea not only overshadows critical thinking on execution, but it can also make entrepreneurs over-protective and cramped.
At the recently-held SF MusicTech Summit, a number of music entrepreneurs discussed the balance between protecting a good idea, and sharing enough information to attract the right investors and partners. And what a difficult balance to strike, especially for those harboring some healthy paranoia about idea theft. “You don't have to tell everything in the first meeting," advised Blip.fm founder Jeff Yasuda in one roundtable.
But Yasuda also noted that VCs frequently decline to sign NDAs, simply because of the vast liabilities. And, on top of that, chances are that the same idea—thought of independently by different entrepreneurs—will come walking through the same door at a later point. That is not the most reassuring situation for those sitting on a golden egg, though the reality is that most ideas are not new ideas.
And, even the greatest ideas can die because of poor execution. Here's an exclusive interview between Digital Music News partner transmitNOW and Claritas Capital entrepreneur-in-residence Mark Montgomery. Montgomery has worked with a vast range of music and entertainment companies, including stars that span Gnarls Barkley, Keith Urban, and Kanye West. “Tons of great ideas, not a lot of great execution," Montgomery describes about two minutes in.
