SproutBox came to my attention the other day because of the really great work it is doing investing in startup companies. But as it helps out entrepreneurs, not to be overlooked is how entrepreneurial it is in offering a new approach to venture capital.
When the SproutBox founders established the entrepreneur investment firm, they knew they didn’t want to be just another venture capitalist that simply wrote a check. So they set out to redefine the term by actually investing their expertise into the company’s success.
The founders have an extensive background in business, technology development, software engineering, product development and creative marketing and design. Most are successful entrepreneurs in their own right and have an insider’s perspective of the challenges budding entrepreneurs face under the current startup culture. So they’ve basically set out to change it.
With the SproutBox formula, they invest their talent in exchange for equity at the idea stage, as opposed to the traditional product implementation stage. For startup companies, that means you can focus your attention on turning your idea into a money maker without having to worry about business functions, like accounting, product production, hiring, raising funds, workspace issues, human resources and legal matters.
Under the SproutBox model, the business is ready to exit after a few months of SproutBox guidance with a marketable product or service and a healthy revenue stream. This is achieved by enabling ideas to develop and generate revenue without having to worry about large reoccurring costs, like overhead and personnel, while trying to get your product to market.
SproutBox is particularly interested in working with entrepreneurs with Web, mobile, or desktop business ideas since these types of applications are best suited for its venture capital model.
As the traditional venture capital model is redefined to better meet the needs of entrepreneurs, it’s reassuring to see that entrepreneurs are a major part of the change by bringing a first-hand innovative focus to the concept.
Although SproutBox is relatively new, entrepreneurs should be excited about its possibilities for providing valuable financial help to startups. What do you think about the concept? Leave us your thoughts and comments.
Matthew Toren
