The risk that a team, a leader, or a company cannot execute on their promise or their ideas. Investors generally prefer a high-quality team with a low-quality idea over a low-quality idea with a high-quality team. This is because there is so much risk in execution. MOST teams CANNOT deliver. So a team that CAN deliver is worth the investment. Show you can deliver and reduce execution risk.
Minimum Viable Product
This is the smallest, simplest product that you can create to achieve at least some part of your vision. A minimum viable product may be a small fraction of what you hope to achieve, but it is useful enough that people can start buying it and start giving you feedback. Start with a minimum viable product to minimize your seed investment, get early feedback from your investors and prospects and stay flexible with your development.
Start-up Business (What is a start-up?)
A start-up, the way we use the term, is a growth business that is just getting started. The owners intend to create a company worth hundreds of millions of dollars. They plan to get to $30 million in sales in the next 3-5 years and plan to professionalize the business. This means that the start-up team will bring in management and even step out of the business if necessary. The Start-up focuses on building the business over the long term, not just creating a business that helps them live today. Investors are interested because they agree with the start-up’s approach to achieving that goal, see that the start-up needs some cash to get going and provide that cash to achieve that long term goal.