Over the past year, we have been talking to various investors – VCs and angels, and incubators and accelerators. What we discovered that the entire startup ecosystem is structured to look for and invest in the less than 1% of the entrepreneurs who are ready and fundable.
For example, there is a VC firm in Boise, Idaho. They get 500 deals a year. They invest in four. That means that less than 1% of the entrepreneurs who apply succeed in getting financed. One of the Silicon Valley’s super angels, Mike Maples, told us that he gets 7,000 deals a year and invests in 12 to 15. That’s a 0.21% hit rate. The flip side: a 99.79% rejection rate.
The sad story is that there are way too many non-fundable businesses floating around in every community. Those businesses contribute significantly to what we call high infant entrepreneur mortality rate.
The 1M/1M Program is designed to help those early stage at-risk-businesses to become strong and sustainable by using thoughtful bootstrapping. And for those ideas that are simply bad business ideas, 1M/1M guides entrepreneurs on how to develop better business ideas.
We hold a belief that the global economic system will perform significantly better if we can help those 99% of entrepreneurs who are non-fundable for one reason or another. 1M/1M Program is designed to empower entrepreneurs regardless of their potential to attract investment.
We invite your organization to use the 1M/1M Program to reduce your local infant entrepreneur mortality rate.
Here is how: 1M/1M supplies the methodology, the curriculum, the connections. Your organization provides your local entrepreneurs with community support. We see this as a powerful synergy of combining resources, without wasteful duplication. We see it as an example of truly democratic, distributed Capitalism 2.0.
Would you like to discuss this? Then, come join us at the next 1M/1M Strategy Roundtable. We’ll talk about this and much more.
Please share this message with anyone who you think could benefit from affiliating with the 1M/1M Global Initiative. 1M/1M aims to nurture a million entrepreneurs reach a million dollars each in annual revenue and beyond by 2020, thereby creating a trillion dollars in global GDP and ten million jobs.
1M/1M partners with incubators by offering them a scalable way of growing their business, so that they could nurture a greater number of entrepreneurs and create greater shared value globally.
NB: Post written by Irina Patterson, Ambassador, One Million by One Million