Startup ventures based upon innovation risk failure if they are not able to:
Raise enough money to fund the project from one key milestone to the next.
Prove that their innovation is actually new, addresses an unmet market need, and that it works.
Create barriers to protect the project from competition, at least during the early growth phase.
Recruit and manage a team that has the right skills, enthusiasm, and cohesiveness to work effectively together.
Accurately project the costs and time needed to take the project from concept through development.
Solve the "chicken-or-egg" conundrum that often arises around development, testing, and funding.
Honestly assess the value of their invention. Is it really a better mousetrap? Identify and implement what has to be done to make it so.
Take the time to clearly identify the features that differentiate the innovation and provide competitive advantages, and emphasize them in development and commercialization.
Monitor competition and be nimble and flexible in an ever-changing market and competitive environment.
Shepard cash and other resources carefully, avoid overspending on legal and other services, buy used, save paperclips, and don't pay for a waterfall in the company parking lot. But don't short-change employees or mission critical tasks.
New ventures around innovation are more likely to succeed when they can:
Recruit and manage a great leadership team.
Prove that the innovation works, and is going to be superior to the competition.
Secure protection for the invention through licensing, patents or trade secrets.
Put an attractive investor package opportunity together and secure adequate funding.
Accurately assess the cost and timing of the development process.
Understand the actual value of the innovation to customers in the market.
Adjust to inevitable changes in the market.
Focus spending on value creation and avoid overspending on overhead.