The three risks
I was recently introduced to Bala Kamallakharan, from Iceland Venture Studio. He’s building a rather remarkable startup ecosystem in Iceland, working with and investing in companies that are tackling some challenging industries (like banking).
One of the things Bala shared with me has stuck in my head for the last week. He called it the three risks. Every new technology startup faces three existential risks before it can become a viable company and graduate from the seed stage to a more mature organization.
The three risks are:
Can you build it?
Do people want it?
Can you put it in front of the people who want it?
These are not new ideas in and of themselves, but it’s a wonderful and succinct summary of the risks and hazards that early stage companies face. As a guidepost, I think they are really valuable, and I plan to steal them for my own work as an investor.
If you’re running an early stage company and what you’re doing doesn’t address one of these three existential risks, you might have your priorities in the wrong order.
When capabilities and opportunities are vast, the inquiry into what's worthy of one’s energy and time becomes imperative.
I'll add to yer list:
- Does this venture align with my core values and contribute to the broader societal or communal good?
- Does working on this project provide a sense of existential fulfillment and resonate with my understanding of meaningful work?
- Considering the finite nature of time, is this endeavor a profound and impactful use of my time, fitting well within my long-term life vision?