Big Ideas

So what's in an idea?

Every day I talk to someone who tells me that they've got a great idea and that it's going to change the world. They always seem to drop the name of some major company and go on to explain why their idea is somehow related.

I hate these conversations, because this is where I begin to operationalize their idea. I take their overly sanguine brainchild, perform major surgery, amputate any unnecessary appendages, and put it in a package that we hope will sell. It's no surprise that this process often kills the idea as well as the entrepreneur.

If you're wondering what I do, I'm a corporate venture capitalist for a major U.S. health system. I pull ideas from people in the corporation and try to commercialize them. I also work with outside companies to find new ways to create and commercialize value for the health system.

Two weeks ago a man who I've been working with on an idea came into my office, slapped his hand on my desk, and declared to me that he “want[ed] in.” Not fully understanding what he meant, I asked him to explain, and he said that he wants a piece of the new company. This guy has been a wonderful resource to me and others as we work toward launching this company, but this was a bit too much for me to handle. First off, it wasn't really his idea. His original idea is turning out to be more of an appendage, albeit major, than the core business. Secondly, he seems to think that this company is going to be worth something because it was a great idea. Wrong...mostly.

Big ideas are required to create and commercialize value, but when you add up all the work that goes into building a successful company, the ideas are only the tip of the iceberg. After the tens or hundreds of people involved in executing on a good idea, in addition to the capital required to get things going, the idea is merely an afterthought. In fact, I bet that if you asked those people who were involved in building a company, those who executed on an idea would probably take offense to anyone claiming that their idea made all the difference. I have no problem with his involvement, but the reward should equal the risk, and right now, it’s not much

To be clear, I enjoy confabulating about the next big company more than most, but any great idea must be eventually tempered with reality, and it’s the reality that can be so harsh.