“Nothing is more hateful to wisdom than excessive cunning”
Edgar Allan Poe, The Purloined Letter
Competition for finding and investing in hot industry trends and companies is fierce. The shiny glitter of market trends attracts capital. Best and brightest stars in venture capital and private equity work almost in unison seeking the same hot investment profiles.
Entrepreneurs understand this phenomenon and define businesses solely based on what will be quickest path to capital and fortune based on investor trends.
Not all ambitious managers seek paths of least resistance. Some relish challenges and opportunity inspiring a tired or poorly performing company or unit of large enterprise. Career advancement in many companies takes the shape of stars being promoted into the next impossible situation to ideate and chart an execution strategy for success. That does not necessarily suggest a tear down or restructuring. Simply a vision to inspire new direction. Capital needed to change momentum can cost far less than the investment capital to overpay in hot markets.
Changing momentum simply takes creativity and a commitment to pivot as well as a faithful organization and aligned capital to execute. Witnessed in private equity when partners lose interest in a company or chase new trends. Good businesses can languish and fail to have the necessary capital infusion to pivot. Similar challenges exist offering new businesses to capital providers. It’s tough to break through hot trend investment biases and gain attention. It would be interesting to know how many investors understand the value or have experienced investing in “skunk works” that can change results trajectory and the enthusiasm of an organization.
Give consideration for how a breakthrough external catalyst can create high energy and increase value in portfolio companies and/or in units within a larger organization that may be stalled or in decline.
the magis team
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