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Typology of Ventures

K. Kumar

Entrepreneurial Management

PGP Term III 2015-2016

2 !e"em#er 2015

©K.KUMAR



Typology of $e% Ventures

• Revolutionary &entures

• Niche &entures

•

Ventures t'at are propagators of ne% te"'nology or inno&ations

• Hustle &entures

•

Speculative &entures

©K.KUMAR



(e&olutionary )usinesses

Characteristics Focus of Actionsand Exploration

Fit withentrepreneurs

•(e&olutionary i*ea+inno&ation or "on"ept•ne% pro"esses,

manufa"turingte"'niues•an s'a/e up amature* in*ustry•an "reate a ne%in*ustry

•Eamples

•!i"ult to estimatet'e gro%t' rates an*pro3ta#ility

•4uperior &alueproposition•o% "ustomers %ill#uy an* use t'epro*u"t or ser&i"e•o"us to "reate an*

prote"t proprietaryassets

•4uits t'ose %'o%ant to %in or loseon a gran* s"ale

•4'oul* #e "leara#out 'ar&est an*role in t'e futuregro%t' of t'e&enture•4'oul* 'a&e

etraor*inaryorgani7ing"apa#ilities

©K.KUMAR



$i"'e Ventures


Fit withEntrepreneurs

•$ee* not #e ara*i"al "on"ept ori*ea

•4er&e segments%it' a uniue nee*not ser&e* #ymainstream o8erings•Eamples

•Eisten"e of asegment %it'*istin"ti&e nee*

•Per"ei&e* &alue oft'e o8ering #y t'eni"'e mar/et•an t'e 'ig'er "ostsof spe"iali7e*o8ering #e re"o&ere*

an* pro3ts ma*e•9ill t'e pro3ts #esigni3"ant enoug'

•Entrepreneurs %it'insig'tful /no%le*geof t'e larger mar/et

an* t'e ni"'e inparti"ular•Entrepreneurs %it'mo*erate gro%t'am#itions an*limite* resour"es

©K.KUMAR



Propagatory )usinesses


Fit withentrepreneurs

•Propagate anemerging te"'nologyor a pro*u"t: no nee*

for great inno&ationor strategy•4pee*y ee"utionan* operationale"ien"y•;ui"/ly "apture

s'are to *ominate afast gro%ing mar/et•Eamples

•Is t'e mar/ets'o%ing signs ofearly a*option of

t'e pro*u"t ortren*•Is t'e pro*u"t orser&i"e *e3ne*%ell enoug' toui"/ly pro*u"e

an* mar/et•Is it a gro%ingmar/et

• Pro&en superior"apa#ility toee"ute

•Entrepreneurs%it' "ompeten"ein *eal ma/ing an*fun* raising tosupport gro%t'

©K.KUMAR



ustle Ventures



•ragmente*in*ustries- mostlyser&i"es•Entry an* eit not

noti"ea#le•In&estments "an #estage* as t'e#usiness gro%s•4oft *i8erentiators-Vision+ Values+

"ulture+ uality ofresour"es•Eamples

•9'at aspe"ts ofsuperior ee"ution"an t'e &enture"ount on•Is t'ere a nee* an*&alue per"ei&e* #yt'e "ustomer•an it gro% in ane&olutionary %ay ift'e "on"ept is

"ompelling enoug'

•Entrepreneurs %it'limite* resour"esan* mo*est gro%t'am#itions•4our"e ofprofessionalsatisfa"tion•an not pro&i*eetraor*inary gro%t'•<imite* eit options

©K.KUMAR



4pe"ulati&e Ventures



•=n opportunity to#uy lo% an* sell 'ig'•inan"ial ris/s

*epen* on t'e termsof t'e *eal•$o stage*"ommitments- fullyepose* on"e t'e*eal is ma*e•$o fo"us on

organi7ation #uil*ingan* rapi* gro%t'•Eamples

•Is t'ere an ar#itrageopportunity•o% ro#ust are t'e

assumptions a#outt'e pri"emo&ements•!o I 'a&e t'estaying po%er to seet'e *eal t'roug' to

"ompletion•=ssessment #ase*on personal insig'tan* intuition

•4uits t'ose %'o%ant ui"/ pro3tsan* are %illing to

ta/e "ommensurateris/s•4'oul* 'a&e t'e3nan"ial strengt' togo t'roug' t'e *eal

©K.KUMAR



>se of Typology

or un*erstan*ing t'e #roa* strategi"issues

or assessing t'e fo"us of a"tion an*

learning to get t'e &enture o8 t'e groun* or assessing t'e gro%t' potential an*

sustaina#ility

or assessing t'e 3t #et%een t'e &enturean* t'e entrepreneur?s preferen"es

Types are neit'er mutually e"lusi&e @ofteno&erlapA nor e'austi&e

©K.KUMAR

Download - EM Typology of Ventures 281215

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