Too much money chasing too few good ideas. Or is it the other way round?

There are many investors who have the money, but complain about not meeting the “right startup” yet. On the flipside, there are thousands of startups wondering why these “moneybags” do not see how great their business ideas are.

So, how can we solve this paradox?

Ultimately, the real judge is the paying customer. The following assumptions and/or hypotheses must be validated

• There are customers who have pain points, and there is no existing solution yet;
• Customers are willing to pay for a solution to their problems;
• The startup has confirmed the customers’ pain, and can build a solution;
• There is evidence that the solution has a clear customer pull.

If the above hypotheses are validated, then there is a winning “business model” on hand. This is a win-win for all – the investor, the startup and the customer!

The LEAN STARTUP methodology, through a series of low-cost and rapid experiments, helps startups validate the above assumptions, and thus build a business model which has a very chance of success.