A Rough Guide For Startup Aficionados — What Role Suits You Best?
Most of us today have heard of a startup and possibly thought about doing something in this space. In fact, there’s a good chance that you’ve already downloaded (and used) an app made by a startup. However, for the young or inexperienced, it may be a bit difficult to pinpoint what exactly to do with your interest and enthusiasm in the startup world. Should you become a founder, an investor? Maybe an advisory role would be more suitable for you given your background? Whatever you choose, remember that it’s better to do something you really like. Entrepreneurship can be very tough, so it ought to be something you genuinely want to be involved in on a day-to-day basis. In the following paragraphs we’ll cover several startup roles you can consider to take on.
Founder
When it comes to startups, one of the first ideas many of us have is to become the founder of our very own venture. Though the path is hard and you will probably have to learn from many failures, it is one of the most active roles you can take on in entrepreneurship. Even though most startups fail within the first three years, the journey of putting a team together, creating an MVP and launching a new product on the market is an extremely valuable experience that many may never acquire. On the flip side however, becoming your own boss is not something everyone would choose to do today. Not everybody is ready to pass on their ‘safe’ job and salary to move into a (sometimes) chaotic work environment with (almost) no salary in the beginning and a ton of workload that doesn’t seem to end no matter how many emails you send or meetings you take. Not only will you have to shoulder the full responsibility of the venture and its success/failure, but you will also be required to lead a team to build a product around a working business model that caters to a market that truly wants what you’re intending to sell. If all goes well you manage to sell something people actually care about and want to buy, however in between that and everything else that might happen there’s a very large trench.
There are a myriad of reasons for startup failure, so it’s not crazy to hear of a founder that’s successful after the 3rd attempt.
Thus, if you have an idea, see an opportunity and want to take a serious shot at becoming a startup founder then one the best things you can do is to learn from others and their past mistakes, especially if you’re intending to innovate in novel spaces such as VR or AI for example. Reading articles such as these would be a good step to pick up viewpoints and experiences from others — all to frame your thoughts and give you a better idea of what to expect. Afterwards, there’s only one way to truly test the waters and that is to make the jump and dive in!
Co-founder
If taking on the full responsibility for a company and leading a whole team seems to be a daunting task for you then you can always look into becoming a co-founder of someone. There are founders everyday looking for someone to be their ‘right-hand (wo)man’ or a person with a skill-set different from theirs. Teamwork makes the dream work they say — however it is critical to have a balanced startup team. There usually is little success in teams where everyone is an engineer and no one knows how to sell a product for example. Thus, you may come across founders looking for technical know-how, sales genius, marketing skills or financial prowess to help build the venture and create something. Being a co-founder can be a great way to learn a lot about entrepreneurship and innovation as well as how team dynamics work.
Inventor
A lesser-known and talked about role in startups today is the person who actually goes into the garage or lab and engineers a new piece of technology prototype. Being able to actually make something from scratch is an incredible skill to have, however not knowing how to put a business around the invention may be a challenge for some. For someone who is more excited about the invention, testing and engineering side of things, it might be a good idea to improve your skill-set and team up with others at some point to take things to the next step. Not every founder has to become the next CEO. Having an early working prototype might be a game changer if you reach commercialization and mass market, however the journey there will require you to take many steps. Nonetheless, it can be very exciting to build something and have it change the life of others later on. Think about the many health-tech solutions that are being developed today to tackle known health issues that people face. Being the inventor of one of these could be a great personal achievement!
Startup Lawyer
If you have a legal background as a law graduate or as a practising legal counsel then becoming a startup lawyer could very much be an option for you. Startups are always facing legal challenges, be it in terms of intellectual property or raising funding from multiple investors across different jurisdictions — there’s always a legal aspect that comes into play when it discussing development at startups. This is especially true nowadays given the technology innovation climate we live in. Novel and disruptive technologies such as blockchain bring about many changes and questions — startups in this space tend to push the boundaries of what is “regulated” and may even end up operating in a kind of grey area as there may be a lack of regulation, policies and/or laws made. This makes it important for founders to seek the support and reliable advice from a legal counsel — ideally one who is familiar with the startup world and its different dynamics.
Entrepreneurship Academic
Being inspired by startups and innovation as a subject can be essential for choosing an academic career path in entrepreneurship. Whether you become a researcher or a teacher, teaching others about the theories behind entrepreneurial science and innovation can inspire students to launch their very own venture some time later down the line. It can also be a role that allows you to learn much more about the “black box of innovation” and help others (e.g. founders, investors) understand what works and what doesn’t and at which stages of the entrepreneurial journey. As an academic you will gain access to research data and may even work on developing new theories hat may help the founders of tomorrow innovate better with increased success. Most startups tend to fail and this lies around 90–95% depending on whom you ask. Several years ago, the theory on disruptive innovation would have been a completely wild idea to many people. However today, after many books, articles, CEO’s and founders applying the constructs of disruptive innovation, it has become a theory that is generally well understood and is being embraced by many small (and large) firms.
Startup Advisor
If you have some kind of field experience or have worked as a consultant for example, then becoming a startup advisor could be a great move. As opposed to advising large corporates, taking on smaller cases with early-stage startups might be a more exciting endeavour given the types of challenges that startups face in terms of product development, team building, commercialization, business modelling and funding for example. That being said, you will find that there are many kinds of startup advisors that advise (and provide mentorship) in a range of areas. Some you may come across include: finance, sales, operations, legal and engineering. What makes for a good advisor and what doesn’t? Many things really. The most important however is your reason for advising others. Why you do what you do is important and if having a positive impact on the world is your reason then putting your experience and skills to the service of others is a good way to realize such impact. Entrepreneurship is a very challenging path, and having good advisors to look out for a team and genuinely support them can make a real difference in the end result. Of course, to advise someone on something you will need some solid experience, be it from a past career or from your own previous startup experience.
Incubator & Accelerator
A startup incubator or accelerator can be vital for supporting startup teams in their early days when they may be lacking access to key skills, funding, knowledge and networks to move their venture forward. If you believe you’re good at facilitating things for others and connecting people together then an incubator or accelerator route might be an interesting option to consider. Most programmes tend to be based on a theme, e.g. startups in robotics, and include a demo day at the end. Thus, it is important to find your own niche and be able to put a team together to support you in the early development of a community of startups, advisors, investors and service-providers. Having project management experience and knowing how to acquire sponsorships can be a great start for someone looking to put their own incubator or accelerator together. Of course, location is key, thus it’s recommended to choose startup hubs such as London, Paris or Berlin for their concentration of people active in the world of startups.
Angel Investor
Many startup founders at some point kick the bucket and decide to move on into a different path. Some choose to become an advisor or mentor, while others may decide to choose a completely different career path. Some however, may choose to use their startup experience from being in the field and invest in new exciting ventures as an Angel Investor. Angel investing can certainly be fun and it can be a very flexible way to invest as you don’t really have to be accountable to anyone in terms of what you invest in and why. You can also participate in syndicates and angel groups to share the fun. So if regular mutual funds and real estate is doing it for you, you can always look into investing in startups here and there. As with any type of investment, learn more about what you intend to do before wiring your first 100k, as the lessons can be…well, costly so to say.
Venture Capital
Probably the toughest route you can take is to raise a venture capital fund and invest in a range of startups to make a return over a ten year period. Being a VC would allow you access to many different startup teams and ventures, which would dramatically improve your understanding of the whole startup ecosystem, the ins and outs of entrepreneurship as well as give you a solid know-how of different markets (depending on your fund’s strategy and thesis). This kind of access can be very challenging but also rewarding.
Although it is not for everyone, a venture capital fund can be a great way to not only participate directly in the ecosystem but also a way to create real tangible impact together with founders who you work with on a daily basis.
In fact, as opposed to a regular job, no day is the same as a VC. Whether you’re travelling to a startup event or meeting a founder for the first time to discuss a potential investment, your days will most likely be hectic, but never the same! The path to becoming a VC can be different for many. Furthermore, it is important for a fund to be able to differentiate itself from others and develop a model that truly fosters innovation. So if you are in it for the long-run then the VC route could be an option to consider.
Startup Podcast!
Some like to do it, while others rather talk about it. While it may be easier to set up relative to some of the other options we’ve laid down, starting your own podcast on the subject of startups can be done early-on, perhaps when you’re active or much later in life after you’ve had your fair share of experiences. There are various great podcasts out there that cover subjects ranging from funding mechanics or new technologies and their impact on the world, to putting venture teams together and acquiring grants for doing R&D for example. Depending on your chosen model, you can have a set panel or a different guest on every episode that discusses a set of topics together with the host. Podcasts can be very valuable for gaining insights and learning from others that may have done what you’re intending to do. It can also be a great vehicle for providing exposure to new ventures and founders that are working on amazing ideas with potential and build a community of people who are interested in the topics of technology, innovation and entrepreneurship. Finally, podcasts are a great way for sharing your experience with others and reach a very wide and global audience. In all, it is one of the most low-cost roles in terms of resources needed but may be one of the most rewarding roles to take on for some.
Bonus: Startup Guru
Perhaps not one of the roles to take on in the beginning — a guru is likely to be someone that has been around startups for a good while (think Yoda from Star Wars). Former investors, advisors, and founders who have been across the board and have gained valuable insight and wisdom over many years are those who could be considered as gurus of the startup economy! If you manage to have one of these mentor you then it’s a major achievement!
Every beginning is tough, so fear not! As a startup enthusiast it is good to ask yourself what you’d like to do in the big world of startups and innovation. Perhaps you can even ask others what they would think of you being an investor or a founder — feedback from your peers can be valuable in being able to make a good decision. As highlighted throughout this article, not everything is for everybody so it pays to know your skills and interests and choose roles that truly suit you. Of course, there is no harm in trying things out. For these instances, we recommend learning about the role more in-depth and even approaching investors, founders and advisors to get their feedback and points de vue. At N3F we like to welcome everyone who is an aspiring investor or founder for example — so feel free to drop us a message and request our take on things. If you are an avid technologist as we are, then know that we are in it for the long-term impact and change and understand that it takes these little steps to make big things happen.
All visuals in this article were sourced from the open-source platform unDraw.
This article was first published on n3fventures.com
