David Veenstra started the meeting with this phrase "I didn't found Google. I don't have a stash of cash. But I have learned a ton from growth"
There it was, the keyword behind his success: growth.
Redbox, the cheap DVD rental subsidiary of Coinstar, Inc., grew to 1.5 billions in only ten years. Coinstar, the coin machine co. of Coinstar, Inc., grew to 150 million in that same amount of time. Business come and go, Redbox rode the wave that starving Blockbuster left behind, and Coinstar solved a problem noone cared to look into in society...
Veenstra, now managing new ventures for the umbrella company is focused on organic and early stage growth investments. Investments that are focused on "self-service automated retail". If you have an idea, and can turn the concept into a machine, Veenstra wants to talk.
He showed some examples of interesting concepts: hurricane simulators, nail painting and automatic dog washer machines- all hilarious, but businesses nevertheless.
Today, Coinstar, Inc. is investing in innovative approaches to the self-service machine business, such as Seattle's Best Coffee, GIZMO (refurbished consumer electronics), and ECOATM (trade in your phone).
Here is the advice I got from Veenstra:
OBSERVE PAIN. It's important to see, not just hear. Focus on opportunities that solve a real pain point.
LEARN CHEAPLY. Launch the business as a test, focused on learning, tweaking and iterating.. Prototype, holding it together with ducktape is OK.
RECRUIT A "NO BS" BOARD. Find candid and pragmatic advisors. Turned "EyeSite" into "SoloHealth".
AVOID SHINY OBJECTS. Stay the course, there will be many distractions along the way.
You have no idea how many ideas they had for Seattle's Best Coffee. In the end, they just focused on coffee.
Next time you have an idea, follow these truths. It will help you stay the course.
