Billion-Dollar Entrepreneurs (BDEs) are defined as entrepreneurs who have built ventures from startup to more than $1 billion in sales and valuation. Billion-Dollar Entrepreneurship (BDE-ship) is defined as the process used by BDEs to build these ventures. This blog explains the difference between the two faces of BDE-ship.
Glam Face: The business press loves to talk about the glam side of entrepreneurship and business schools love to teach it. This includes:
· Shark Tanks and Pitch Competitions: This is where glamorous judges and investors supposedly pick winners for investments based on a few minutes of presentation. Given that sophisticated VCs wait for Aha, which is real proof of potential, do their due diligence, and yet fail on 80% of their deals, it would be interesting to see audited data to evaluate whether these smart investors on these shark tanks really invest in the ideas they hear and if they do, how do they fare.
· Venture Capital with its tales of instant fame, glamor and wealth where 20-something entrepreneurs use capital from super-smart financiers who can predict the future. In the VC world, glam counts. The opportunity needs to reek with potential and the entrepreneurs need to be stars – or they will be replaced by CEOs who are stars. And even with all this agglomeration of talent, VCs fail on 80% of their investments and their funds succeed only if they have a home run. Could this be one reason why only 20 VCs (you read that right, it is 20, not 20%) are said to earn about 95% of VC profits (and this is from one of the most