Entrepreneur Magnet
The prudent founder seeks to maximize the market value of his company. It does not matter whether he makes this calculation explicitly or simply feels with his backbone that capitalization increases non-stop. The entrepreneur has no illusions that he can get everything for nothing. Reality expects sacrifice from man. Despite the call of hunger, a handful of seeds must be buried in the ground today in order to have a chance of a harvest in the future.
In the first approximation, the more money invested in seed, fertilizer, water and man-hours, the more significant and predictable the result. But only as long as each seed falls into the black earth, not the rocks. Otherwise, it is not scaling and not even an experiment, but squandering resources, that is a crime in terms of business morality. Reality punishes this with a change of ownership or bankruptcy.
Although a sane entrepreneur does not expect to be rewarded for free, this does not mean that he is a fan of the idea: “More investment is the only possible way to increase the company’s capitalization.” To the founder’s intelligence, such an idea is an insult, for it denies him his entrepreneurial essence. “Inventing solutions for absolutely impossible problems” is what reads under the microscope on the DNA of a true entrepreneur’s spiral. But what super-target is worthy of his spear? When the capitalization of a business is skyrocketing with no investment at all.
Yes, in its pure form the ideal is unattainable. But it is not the ideal itself that is valuable, but the pursuit of the ideal. The entrepreneur attracts other people’s capital when it is impossible not to attract it. The founder also invests his own money very reluctantly. Like a compass, his arrow is always parallel to the direction of the Earth’s magnetic field line. That is, his mind is looking for a way, having invested less, to get more. Mathematically, his investment X tends toward zero, while his return Y stretches into infinity.
Yours sincerely,
-Alexander
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