Definitions of terms
At EGV, we believe in Focus and Intensity. Focus is when you do one single thing. Intensity is when you do it sixteen hours a day.
When working with early-stage founders, we try to help them get Perspective and Clarity. Perspective is rapport: with the market, with the competition, with the industry, and so on. Clarity is (self)awareness.
Our role as seed investors is to provide startups with Support and Capital so that they validate their model. Support is coaching, knowledge, and connections. Capital is money (and money is a commodity).
After Product-Market fit is proven, Support and Capital will help startups grow aggressively and conquer market share, increase their valuation, expand even more, and, eventually, get acquired or get listed. These are liquidity events that translate into Venture returns.
To sum up:
(Perspective & Clarity + Focus & Intensity) * Capital = Escape velocity
In other words:
(Value proposition + Speed of execution) * Money = Venture returns
Enter Super-Value props
Value propositions come in many varieties. The good ones are like a punch in the face. Well-executed and well-funded, they are capable of seizable venture returns. The bad ones are soft, unconvincing, and hesitant. No efforts and no money can turn them into winners.
Creating a good value prop is about boiling things down, being bold, and definitely not subtle.
And then, there are the Super-Value props.
To create a Super-value prop, start from an ideal situation like All data should be structured data (if you think of it, unstructured data makes no sense; it’s just noise).
Then try to imagine a radical way to make this possible, such as to invent a new technological format (.quant). Or invent an engine that structures data. Or…
Examples of Super-Value props:
- All vegetables should be free of charge for all people
- Any message sent on any channel should reach their destination on any other channel (SMS to e-mail to chat to voice to…)
- Ships/ drones/ cars should have unlimited autonomy
- Blockchains should be light as air itself, with nodes capable of running on very-low power devices
- Any translation should be deep-translation (text, voice, video — one person speaking in her voice and her appearance in any language on any channel)
Go think of this. Come up with a Super-value prop and imagine a way to make it happen. Then reach out to us at EGV. If it makes sense, we’ll back you with Support and Capital and we’ll help you get Perspective and Clarity.