
No Founders Required: How Flagship Starts Companies - smit
http://bostinno.streetwise.co/2013/04/15/no-founders-required-how-flagship-starts-companies/
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rayiner
I've always wondered if a tweaked version of the DARPA model might work for
VC's. The gist is that DARPA hires a bunch of PhD's (to limited terms) to
serve as program managers. The PhD's have an area of expertise and a research
agenda, but not specific ideas. During their tenure, they think of specific
projects and get a few tens of millions to fund them. Obviously for a VC you'd
want to pin down ideas into more concrete, less blue-sky sorts of things with
correspondingly smaller budgets.

I think the real benefit to the model is that you decouple idea generation
from execution. The guy who is an expert in a particular field and can analyze
the literature to see what can be done isn't necessarily the right guy to
bring a product to market. Indeed, that expert doesn't necessarily want to
take all the risk entailed in bringing a product to market, but may be the
person best positioned to determine what can and can't be done.

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tptacek
My field (broadly, infosec) is disproportionately favored by DARPA, and I feel
like the results from DARPA-funded work have been iffy at best. There's some
standout work, but it floats in a sea of mediocre (or worse) stuff.

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rayiner
I'm probably biased, but I've been impressed by their work in the field I used
to work in (white space wireless). I spoke to a VC the other day who seemed
surprised that we were working on stuff back in the early 2000's that he's
only been seeing commercially in the last couple of years.

I guess the nature of the model is hit and miss...

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marcamillion
So here is the fundamental flaw in this model. Conflict of interest.

If I, as an entrepreneur, walk into the VCs doors to pitch them on something I
have done and research I am doing - presumably without knowing that they have
invested (or are investing in similar research with a view to taking that
research into a commercial business) why should I feel comfortable knowing
that they won't take my research and use it without me.

I know that a successful business is more than just 1 idea, but if two sets of
eyes are looking at the same problem, both trying to build a business around
it and 1 has some insight that the other doesn't....that's a competitive
advantage. That could be used against the entrepreneur - given that VCs tend
to not want to sign NDAs & non-competes before hearing pitches (understandably
so).

So this whole VC investing in their own ideas, while also hearing pitches from
founders....I am not too bullish on.

The potential for conflicts are just too great.

This is like having an EIR but worse....from the pitching entrepreneur's
perspective anyway.

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milkshakes
Lerer Ventures is doing this too, albeit in the consumer space, with their
SoHoTechLabs efforts.

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wfrick
I believe Redstar is too.

