Info

EntHead Podcast: For Entrepreneurs, By Entrepreneurs!

About EntHead Enthead Provides: • High Ticket Growth Resources, • For Professionals who want to increase knowledge to attract high paying clients, • By Entrepreneurs with highly valued fees, • So that you and your organization can generate high ticket sales!
RSS Feed
EntHead Podcast: For Entrepreneurs, By Entrepreneurs!
2017
June
May
April
March
February
January


2016
December
November
October
September
August


All Episodes
Archives
Now displaying: Page 1
Dec 14, 2016

STUDY:
Using data on software start-ups from 1990 to 2002, researchers unveiled that collective sense-making in starting a company to pursue a trend can result in consensus behavior among entrepreneurs and venture capitalists.

RESEARCH:
Market search is a critical part of the entrepreneurial process, as entrepreneurs enter new markets to find high-growth areas.

FALSEHOOD:
When spectacular financing results in a collective overstatement of the attractiveness of a market, a consensus emerges that the market is rich, and the path is cleared for many entries, including those that do not have a clear fit.

RESULT:
When failures render a market unpopular, only the most viable entrants will overcome exaggerated skepticism and enter, taking the non-consensus route. Venture capitalists likewise exhibit herding behavior, following other VCs into hot markets. The consensus entrants are less viable, while non-consensus entrants are more likely to prosper.

CONCLUSION:
Non-consensus entrepreneurs who follow, then unfollow the trends, are most likely to stay in the market, receive funding, and ultimately go public.

Visit Enthead @ any of the following:

0 Comments