Entrepreneurs Sharing with other Entrepreneurs

Artists share their work with other artists. Sometimes it is just a gift, and other times it is a form of payment. I have always loved this.

Recently, an entrepreneur told me that a few other founders had given each other stock so they could both lean on each other. I love this.

We are entering a new phase of start-ups as raising capital for specific businesses is not as free-flowing as it once was. Figuring out how to get profitable sooner than later, owning your destiny, growing slower if need be, and sticking to the people who understand your industry are just a few things.

As profitability becomes more critical, so does this idea of entrepreneurs sharing equity with other entrepreneurs to lean on each other. What VCs will invest in over the next decade will be very different than the last decade.

The evolution of investing in “internet” companies began in the mid-90s, took a turn after the mortgage crash, and became much more interesting in web 2.0 as many veered into supporting anything from software to new products on the grocery shelves, and now we are in web 3.0.

The pool of investors interested in consumer products is shifting, and perhaps those businesses will become large lifestyle businesses with other founders supporting each other as a voice at the table, still with the opportunity to exit at one point but getting there will be different. The crazy valuations will fall into an abyss, and reality will take hold.

I must say, I prefer reality with understanding voices at your finger tips.