Risks

Startup ventures based upon innovation risk failure if they are not able to:

• Raise enough money to fund the project from one key milestone to the next.
  
• Prove that their innovation is actually new, addresses an unmet market need, and that it works. 
• Create barriers to protect the project from competition, at least during the early growth phase.
  
• Recruit and manage a team that has the right skills, enthusiasm, and cohesiveness to work effectively together. 
  
• Accurately project the costs and time needed to take the project from concept through development. 
• Solve the "chicken-or-egg" conundrum that often arises around development, testing, and funding.
  
• Honestly assess the value of their invention. Is it really a better mousetrap? Identify and implement what has to be done to make it so.
  
• Take the time to clearly identify the features that differentiate the innovation and provide competitive advantages, and emphasize them in development and commercialization.
  
• Monitor competition and be nimble and flexible in an ever-changing market and competitive environment.
• Shepard cash and other resources carefully, avoid overspending on legal and other services, buy used, save paperclips, and don't pay for a waterfall in the company parking lot. But don't short-change employees or mission critical tasks.
  

Opportunities

New ventures around innovation are more likely to succeed when they can:

• Recruit and manage a great leadership team.
• Prove that the innovation works, and is going to be superior to the competition.
• Secure protection for the invention through licensing, patents or trade secrets. 
• Put an attractive investor package opportunity together and secure adequate funding.
  
• Accurately assess the cost and timing of the development process.
• Understand the actual value of the innovation to customers in the market.
• Adjust to inevitable changes in the market.
  
• Focus spending on value creation and avoid overspending on overhead.