“The evolution of solutions for early-stage tech entrepreneurs has been exciting, but the success rate has not changed since the beginning of time. Why is a 1% success rate acceptable? Meaning a 99% ruin your life rate. I became fanatical about improving the odds, which led to the birth of the first Venture Ecosystem.” - JY
I am sure you have heard the saying…
The definition of insanity is doing the same thing over and over and expecting a different result.
This definition is the tech industry because, for decades, entrepreneurs have done the same thing over and over, and the success rate has not changed - 99% of entrepreneurs will have their lives ruined when they pursue their tech dream.
Emotionally they will be annihilated…
Economically they will be shaken…
Time will be lost forever…
Frustration will reach an all-time high…
The likelihood of feeling taken advantage of is almost guaranteed…
All because you want to make a difference in the world?!?!
Seems crazy that 99 out of 100 people will have this experience. But, as much as innovation has reached an all-time high (and is still just warming up), there has been zero innovation with increasing the likelihood of success - UNTIL NOW!
Where to Go with Your Tech Idea
Before I dig into the more comprehensive solution (a Venture Ecosystem), I want to shed light on all of the other conduits you can travel with your tech idea.
Let’s first start with vendors…
Software Development: A company that specializes in creating and delivering software solutions to clients. Software development firms typically have a team of software developers, designers, project managers, and quality assurance specialists who work together to deliver high-quality software solutions. They may also have expertise in different programming languages, platforms, and technologies, depending on the specific needs of their clients.
Marketing Agency: A company that specializes in creating and executing marketing strategies to promote and advertise products, services, or brands on behalf of its clients. These agencies may offer a range of marketing services, such as digital advertising, social media marketing, email marketing, search engine optimization (SEO), content marketing, and public relations. Marketing agencies typically have a team of experts in various marketing disciplines who work together to develop and implement marketing campaigns that help their clients achieve their business goals, such as increasing brand awareness, driving website traffic, generating leads, and boosting sales.
Fractional CFO: Financial professional who builds processes and systems focused on bookkeeping, budgeting, forecasting, accounting, tax preparation, fundraising support, etc.
Although there are many other vendors you will need, including business development, press, legal, customer service, etc., the three above represent the absolute non-negotiables. If they are not a 10 out of 10 - your vision will fall flat.
Now let’s talk about capital partners…
Venture Capital: Equity financing from a firm that is looking for companies that will offer 10-100x returns within 3-7 years. Venture capital firms traditionally will make a handful of investments and expect to lose money on 70% of their deals. Venture capital might offer some operational support but does not have any human infrastructure on the product or marketing side of the business.
Angel Investor: Accredited investor who is making small economic investments (typically under $25,000) across many different investment opportunities, typically within industries or niches where they have previous experience. Angel investors are usually the first money in and will “bet” on the entrepreneur more than their idea. Angel investors offer minimal to no value besides capital.
Debt Financing: Although very uncommon at the idea stage, debt financing allows companies to access capital without diluting ownership or control and may be more flexible than equity financing in terms of repayment terms and interest rates. However, it also carries the risk of default, which can result in financial penalties and damage to the company's credit rating.
Now let’s talk about programs…
Incubator: A program or organization that provides support, resources, and mentorship to startups and early-stage companies in the technology industry. Tech incubators typically offer a range of services to help companies grow and succeed, such as office space, funding, mentorship, networking opportunities, and access to resources such as legal and financial support. There is a beginning and an end to most tech incubators, and equity is granted to the organization for the value provided.
Accelerator: A training program, virtual or in-person, for a short period of time focused on mentorship, coaching, networking opportunities, and potentially access to funding at the completion of the curriculum. Most accelerator programs cost anywhere from $500-$10,000+ to join.
Now let’s talk about studios…
Venture of Startup Studio: Venture studios typically have a team of experts in various disciplines, such as design, engineering, marketing, and finance, who work together to develop and launch new businesses. Venture studios take a hands-on approach to building and scaling startups, providing strategic guidance, operational support, and funding in exchange for equity in the company. The goal of a venture studio is to generate a portfolio of successful startups by leveraging the expertise and resources of the team to incubate and launch new ventures. Venture Studios on average, will launch 1-2 companies each year and, similar to venture capital, are looking for unicorn ideas.
Studios were the Best Overall Option Until the Birth of the First Venture Ecosystem
Every option above serves a purpose on the journey for the founder of the early-stage tech company, but each of the options has something missing, which is why the success rate remains so low.
Don’t quote me on this, but here’s my guess on the chances for an exit…
Hiring Vendors - .01% Success Rate
Raising Capital - 1% Success Rate
Incubators/Accelerators - 2% Success Rate
Venture Studios - 5% Success Rate
Venture Ecosystem - 40% Success Rate!!!
Venture Ecosystems are not perfect, but they are better because of the following…
Focus on singles and doubles versus unicorns means we say YES more often
Startup capital of under $100,000 to build an MVC (Minimal Viable Company) compared to $500,000-$1,000,000 with the other options
Shared services which leads to massively top-graded talent
An ecosystem of togetherness where 100’s to 1,000s of founders support one another with partnerships, connections, coaching, accountability, etc.
Marketing drives product versus product-driving marketing, which is far more expensive and risky
Every service under one roof (software, marketing, business development, finance, press, operations, legal, etc.)
Aligned values with our Fair Share Operating Agreement
Access to all forms of capital so fundraising is never a consuming focus
Unfair advantages with a strategic alliance network
And the list goes on and on and on…
Think of it like this…
Venture Ecosystems = Vendors + Capital + Programs + Studios + Ecosystem of Unfair Advantages
And the first and only Venture Ecosystem is Project 10K!
Here’s our reality…
In our first 18 months, we had over 1,000 entrepreneurs apply to work with us, and we said YES to 100+ ideas…
The first 2-dozen companies took 12-18 months and $400,000 on average to launch…
We became fanatically focused on becoming more operationally efficient and we are now launching products in 60-120 days for $50,000 on average…
We got significantly clearer on what it means to be the RIGHT person, with the RIGHT idea, in the RIGHT market, and with the RIGHT business model…
We learned that people on our team CAN’T learn on our dime, and we need people who are paying us dimes when we pay them because of their relationships, relevant wisdom, IP, etc….
We have built unmatched human infrastructure and an unstoppable vendor network - but this is still a work in progress…
We have successfully documented our process and will continue to refine it as we scale…
We have built the most special culture for founders in all of early-stage tech, because as much as we build the products, market the products, perform all operations for the products, etc., the greatest gift we offer each founder is one another. No one is alone at Project 10K.
We have built a shareholder network of accredited investors who are committed to creating unfair advantages for our Founders inside of the portfolio…
We have partnered with top business schools, incubators/accelerator programs, and entrepreneurs of influence…
We have garnered an immense amount of attention from a diverse group of outlets…
We have more women than men founders; we have most ethnicities present; our youngest founder is a teenager and the oldest a mature adult; we have high school dropouts and Ivy League graduates; we have a huge push into the veteran community and an even bigger push into the faith-driven entrepreneurship community as well…
AND about 90% of what we tested did not work, but the 10% got us here, and the 90% led to learning, and all WINNING starts with learning.
Listen, we are FAR from perfect, and we have a handful of entrepreneurs who we were not right for. They were most certainly not right for us, who are no longer with us, but for the most part - we have built the OPTIMAL partner for anyone with an early-stage tech idea who WANTS a partner.
And if you are coachable, fearless, self-motivated, relevant, committed, hungry, can sell, and feel like you are called to do something really significant in this lifetime - then I invite you to pitch our team and potentially join the first and only Venture Ecosystem where…
TOGETHER we achieve more!
We are not perfect at Project 10k, but we are different and, with time, will prove we are better as well!
Live with Intention,
