# Planning to Pivot By:: [[Steven Denman]] 2023-07-14 When you read about startups and the venture capital process (check out the Y-combinator, one of the accelerators of broad venture capital since the early 2000s), it is commonly known that 80-90% fail and almost all of these pivoted from the original idea. Phrases like "the pit of despair" describe the difficult period of figuring out how to properly bind an idea to market, even when the right blend of luck and skill is there. This all begs the question, "What is really needed?" Money is needed, yet 80-90% fail. Innovative leaders are needed, yet 80-90% fail. It makes sense that VC firms have to look at the qualitative features of an idea that will change as it walks out of their doors. There are different levels of detail and time spent quantifying the market potential and risk of an idea, but it seems there are some fundamentals: - The wave - Is there a current dynamic that opens up an unsaturated market opportunity? - The person - Does the founder have the knowledge, the network, and the perseverance to attract the right people and stay up-to-date with the market's direction? - The pivot - Is there a rational set of alternatives that can be articulated with predicted likelihoods and incorporation into current investment and agility? In my current work, I am watching three firms all going through their early startup or post-COVID pivot, and it is fascinating to see the conversations shift as alternatives grow and decrease and likelihood - I take the willingness to explore and change (even if they talk out four sides of their mouth) as a good sign. #### Related Items [[Business]] [[Failure]] [[Success]] [[Ideas]] [[Economics]] [[Marketing]]