I often attend lectures by Howard Aldrich, one of the core researchers on entrepreneurship. He points out in this short video that first phase is not just about getting money and access to capital, but also about how to get organized, and that is the difficult part of it.
Karl Ulrich talks about the myth of long-term investments in innovation.
He offers two possible strategies: a follower strategy (being second after a dominant design is decided and technological trajectories are set) or an acquisition strategy (acquiring small entrepreneurial firms that has achieved some success with the field).
Karl Ulrich is the author of the landmark paper, “The role of product architecture in the manufacturing firm”, which has also influenced Japanese management greatly.
(Mack Center Video)