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Generic Forms of Startups II

In the first article on generic forms, I was writing from the view of the founder who wants to conquer the world. Now, how does the world actually work?

Intro

Rumor has it, that no matter what ecosystem you are in and where you are incubating, there is a network of highly networked and influential people that actually knows you are there if you are relevant enough to be known. And if you are, they will possibly chase you and invest in you. Quite simple.

And this spans globally. Every ecosystem around the globe is watched by a few smart folks. And yes, thos super smart guys at the end of the food chain are networked globally. And hence these super angels will actually find you.

The next thing you learn is that those super angels make far higher returns than those institutional VC guys in almost all cases. Most people with their own VC funds just never got rich but good enough to manage other peoples money. They are foot soldiers. And they get the tier 2 and tier 3 startups to apply to them.

This all sounds old, right? But no, it is not old. I think understanding the interests of networks is super important. But again, this requires a whole book.

Rain making

A pack of superangels are a pack of super intelligent, super affluent, super driven people that have networks all around the world.

Now these people need to allocate money, too. They know how to alocate it well. But they do not have the mental capacitity to run millions of companies. What do they need? Loyal or controllable, capable and driven, etc. people to operationally manage their money. And yes, they will make the really good ones rich. Because you know how to build one company. You know how to build another. And if you have proven you were able to build 5 companies in a short time span, you will get even more responsibility.

It is a simple model. It is not always transparent. Sometimes you have a dedicated sponsor that builds you. That is when you are somewhat a Business Developer in the Rocket Internet Sense. More likely, if you are good, you are used to create connections with other people, You have to run a few miles on your own, then your sponsor comes in, then other people come in. Everyone enjoys the fruits. Bonds between your sponsors get stronger. If you do not disappoint anyone but remain loyal to your original sponsor, you are a good investment.

That is a very good business model. If your sponsor is very influential and wealthy, you can also rise quite high. If your sponsor isn’t, you have limited upside. But if you betray a badly equipped sponsor to trade him for a new sponsor, you are out, too.

For this purpose, people use “pedigree”. That in essence means people follow a path of excellence and proving their value that is long enough to put them on top of a lot of other people before they commit to a sponsor. The classic Engineering Major, Banking or consulting, tier 1 MBA and 2-3 startups and then you pick a sponsor.

Priviledge

Imagine you were inherited hundreds of millions, went to the right schools, trained in the right arts and skills, force fed networking events, etc. If you do not carry on the legacy, you might look like a normal guy to outsiders. But you are not. Those folks are everywhere.

But in the end you are still one of those guys. One of the very vew people that can sit on the plane and experiment ideas for 20 years without even noticing the effect on the personal balance sheet. Quite the opposite to someone with 50k on the account. That burns out of money in 3 months of intensive lifestyle.

If you enter this game, you need to understand the existence and game of those priviledge guys and girls.

Some of them suck. It doesn’t matter to them. If they are priviledged enough. Be it their net worth. Be it their family ties. They will get their asses kissed all over the bench. If they suck, their kinds will know. So the lower tier folks will surround them. The lower tier folks will kiss up. And they will be protected from any fallacy. Doing all the weird things that weird kids do. But yeah, that’s just what it is.

You have folks that just enjoy the game of being important. Not taking over the family tradition or business, they are by definitions weak. They defect what is expected from them. They will never accept that they get abandoned for it. They suffer from the disapproval and their ego is hurt. They will never overcome this ego issue. And hence they are susceptible of getting kissed up. The love being kissed up. Not only because it gives a good “you are ok” feeling. But because it humiliates others. As a power play. You kiss up, the other person thinks you are in need of approval and you are dependent. Which mostly is the case of up-kissers. So throw away your pride if you meet such a person and kiss up. Or run. And go around the person.

Super likable and in the right place

I was lucky enough in my life to enjoy the company of some really good hearted people with a really rare form of happiness and vibe surrounding them, that they drew the attention of others. Such individuals, with such good energy, and being humble and capable at the same time, with a clear likable agenda and low compromise on some basic ethics, you can go a long way, too.

If you meet these people, you typicallyS understand quickly that they had tremendeous luck in their psychological development, their early life choices. They made it to where they are while maintaining deep and strong relationships with highly supportive and similar people. You could not buy the same even with a trillion in money. This is where a history of a person and a character create something priceless.

Suche pure people get a lot of benefit of the doubt. It is not wealth in their veins, but it is still birthorder paired with the right skills and decisions of parents and their parents. if the 3rd or 4th generation is living in the right environment, close to each other, all building these high quality networks for being happy and content and capable humans that are pure in some sense, you have a long lasting investment. And an unimitable value proposition that makes you a leader, social justice seeker and influencer.

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