Innovation Looks Trivial in the Early Days

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In the early days of a startup, innovation can look trivial.

Innovation is often applied to the lower end of the market.

New technologies often start as simple devices or applications.

These devices have minimal functionality and lack robust features.

In vetting startups, look past the minimal functionality to the rate of change of the technology.

While today it may seem trivial, a fast growth rate can move it into a more competitive position.

Look at the underlying growth driver.

For example, semiconductors double their density every eighteen months.

Genomics brings an even higher growth rate.

It's these drivers that determine the trajectory of a startup's product.

Startups that leverage growth drivers are positioned to succeed over time.

The incumbents often dismiss startups because their initial solution underperforms the current competition.

Over time, the startup's product will outperform.

Consider this in evaluating startups for investment.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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