The Value of Ideas
Justin Kitch, the CEO and founder of Homestead (and all-round good guy), has an excellent analogy for the value of ideas: tomato plants.
“You can get dozens of organic heirloom tomato seeds for $2.99. But if you want to get a single seedling of the same variety, you’ll pay the same price. Go to the farmers market down the block in August (where you can choose from dozens of heirloom varieties) and you might very well pay $2.99 for a single tomato!”
That in all likelihood mimicks the capital markets for growth firms. From seed stage to seedling (venture?) and then Farmer’s market (IPO/M&A).
