Venturepreneur:

Venture Management

What Changes as Company Grow

Operating Characteristics

By Terry Collison, Blue Rock Capital

The Start-Up

The Growing Venture

The Mature Company

Cash Position

Limited financial resources ... need to address basic capital and cash-flow issues

Increased cash-flow and requirements... some borrowing capability ... need to generate additional capital 

Financial stability, slower growth, bankable

Sellable?

 

 

Organization

No specific organizational structure

Organizational structure forms around individual personalities

Formal organizational structure defined by functional needs

Communications

Direct communication ... "one-on-one" style

Increased demand for lateral communication (geometric growth in need for information)

Increasingly formal communications various methods

Definition of the Business

Few, if any, stated policies

Policies evolve from practices (and are often conflicting)

Policies get documented for consistency and fairness

Strategic Focus

Emphasis on reaching the market and generating revenue

Emphasis on growth and raising capital to create and sustain growth

Emphasis on spending and cost control, less emphasis on R&D and growth strategies

  

  

Compensation Program

Compensation based on need (and availability)

Compensation based on need but often administered according to personal or subjective factors

Structured compensation based on internal and external equity considerations

"How things are around here"

Organizational culture mirrors the founder's style and values

Organizational culture becomes ill-defined as new people join the company

Organizational culture gets redefined and is set as foundation for strategic planning

"Roles & Holes"

Duties and responsibilities are loosely defined -- everybody wears multiple hats

Duties and responsibilities are defined by the incumbents ac-cording to current priorities as they are perceived

Duties and responsibilities are officially defined according to current and future organizational needs

"Center"

Clear sense of organizational purpose

Duties and responsibilities are defined by the incumbents ac-cording to current priorities as they are perceived

Organizational purpose is formally redefined through strategic planning