Is this a position that exists/could exist in VC
Are there "talent scouts" or "talent managers" in the world of Venture Capital. I guess you might call them "Entrepreneurial Consultants".
I'm talking about an individual who helps people with new business ideas get their businesses started, in exchange for a fee or a stake in the company. Someone with a great deal of business knowledge (i.e. knows if the idea could work or not, knows how the business would need to be set up, knows how to present it to VC's). And someone with a lot of connections in the VC world (i.e. someone that is listened to when he approaches with an idea).
So, basically like an "in-betweener" between inventors/entrepreneurs lacking in business knowledge and venture capital firms.
Are there many, if any, people out there doing things like this?
Yes, you have just described the role of the advisory board.
Do these people work as self-employed individuals, or as part of a venture capital group?
angel investors?
No, not angel investors, because the person I'm talking about wouldn't be the one to finance the business.
I'm just talking about an "in-betweener" between the entrepreneur lacking business sense, and the VC firm seeking new business ideas.
I'm imagining an individual who meets with an entrepreneur to hear a pitch. If he thinks the idea has some promise, he develops a sound business plan. Then he presents the idea to his contacts at appropriate VC firms. For his services he could either charge a fee, or ask for a small percentage of the business.
What's wrong with the financier and the adviser being the same person? VC firms anyway will want to see some traction before they invest they usually won't invest in an idea that hasn't proven itself, and you'll need financing to do that.
I'm just wondering if it would be possible to operate as an individual doing something like this. I'd rather work for myself than for a VC firm.
I've seen this as a hole in the industry also but OhYeah is correct, VC firms need to see a bit of recurring revenue before they are going to get involved. This stage of financing is primarily bootstrapping or angel investing, and I don't believe a "idea consultant" would help much at this point, unless you had some serious angel contacts...
Ive actually found that angels are getting more and more organized in order to facilitate pitches
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