How can you tell who the smart ones are?
They are the ones who ask questions.
Are you an accelerator? Venture capital firm? Investment bankers? Consultants? If you like start-ups, why do you spend so much time with big organizations like governments, large companies and universities? Who are the guys in the suits? We get asked these and many other questions all the time. We like to hang around smart people. And we like asking questions too.
1. Is Opus Faveo a venture capital firm?
Opus Faveo is not a venture capital firm. Whlie the Opus Faveo Project explored the possibility of creating a venture capital firm and did extensive research on the industry, the decision was made not to create a fund.
2. Why not create a fund?
Venture capital firms are inherently tied to the fundamentals of their industry: fundraising, exits, and management fees. The mechanisms for growing a new venture have never before been as varied as they are today. Being independent of a specific investor or fund allows Opus Faveo to focus on maximizing the value of the venture independent of its capital sources. In addition, investors are only one stakeholder in a venture – its employees, founders, management team, customers and suppliers are also stakeholders. By not having a fund, Opus Faveo can be much more flexible in building scalable ventures. We do like having relationships with investors, however, and we are always interested in developing new ones.
3. Will you ever have a fund?
Notwithstanding our concerns about having a fund, we do appreciate that capital is an important tool in venture creation, and more importantly that a vibrant venture capital community is vital to any dynamic ecosystem. As such we are continuing to explore the creation of a venture capital fund, probably as an independent venture development project of Opus Faveo.
Incubation and Consulting
4. How is Opus Faveo different from an accelerator or incubator?
Put simply, we focus on assembling the components and nurturing the venture over the long term rather than simply accelerating or incubating someone else’s venture over the short term. Well-run accelerators and incubators are an important part of a vibrant venture ecosystem, and as such, we encourage policy makers, investors, and entrepreneurs to support them.
5. Do you work with entrepreneurs?
We believe in fostering a positive environment for scalable entrepreneurship, which we do with our Entrepreneurial Development initiative. Read more about it here.
6. Is Opus Faveo a “sweat equity” consultant?
We work hard, we sweat the details, and our compensation can come in many forms, but we don't really think of ourselves as consultants for equity. Just as a good banker is an advisor to her client and a property developer helps to shepherd along a project, we work with our portfolio companies over the long term and provide plenty of advisory and consultative resources. And we believe in aligning our interests with those of the venture, putting our own compensation at risk. So, when it comes to startups, we are flexible. In our corporate and institutional practice, we generally do not take equity compensation.
7. Does Opus Faveo only work with startups?
Our core is venture development – assembling the components to create a new venture, then supporting that venture as it grows. We also work with very large organizations as partners in the development of new ventures through our Ci2 practice. As part of that practice, we conduct studies and provide policy recommendations to these organizations. We do work with startups and young ventures through our Entrepreneurship Development initiative, and we try to encourage entrepreneurship where we can.
8. How does an entrepreneur connect with Opus Faveo?
If you have a new inter-dimensional communication technology, feel free to use that. Otherwise, please contact us by email or instant real-time voice-enabled messaging (telephone). Again, our expertise is building scalable ventures. Our contact information is here.
9. Why are you based in Dallas - Fort Worth?
Dallas - Fort Worth is the fourth largest metropolitan area in the United States, but it will surpass Chicago to become the third largest by the next census. It is home to a growing number of Fortune 500 firms (currently 18). Most importantly, however, compared to its larger brethren the DFW region has a dramatically lower cost of living, a high standard of living, and a much more favorable tax and regulatory environment. Oh, and its growing faster. Companies and people are moving to North Texas. It’s fun to be around growth - it’s why we are in the venture creation business. And finally, Opus Faveo is interested in building its home community, but it operates globally. As large companies continue to demonstrate with their relocations, it is an excellent place for an international firm to be based.