Podcast 2nd October 2015
Start Ups is a bad word for many. Valuations, money chasing whacky ideas, first generation entrepreneurs, too many ventures, too few will succeed, bubble burst on the horizon and other such disparaging statements are all over the place. The sceptics may well be right on Start Ups but that does not take away the fact that Start Ups will change the landscape of the business environment before the sceptics are proved right, if they are ever proved right.
Start Ups are already changing the way people shop, eat, travel, learn, enjoy, read, watch, play and transact. Needless to say Start Ups have already killed many traditional businesses and are slowly killing businesses that have failed to recognize the new wave. If a sceptic is either an owner of the business that has or is being killed by a Start Up or is working in a business that has no future, the sceptic is the one who is really affected. The Start Up will either survive and grow or be taken over or just die.
The angel or venture capitalist or private equity that funds Start Ups is willing to let a few bets go wrong as the few that are right will provide the extra returns for their capital.
The question of a Start Up bubble will always be there and investors will either shun high valuations or continue to pour money where they see growth. Apart from killing traditional businesses, Start Ups are also taking money out of public markets, as the companies that are traded publically are not seen delivering the growth that Start Ups can.
Start Ups cater to the future generation as many young entrepreneurs are not clouded by the past and are able to relate to the present. The entrepreneurs are able to take that extra risk to succeed and investors are only too willing to fund that risk appetite.
Start Ups does not mean small. Many of them are Unicorns with over USD 1 billion in valuation while some are giants such as Uber and Airbnb. These Start Ups are able to fund and scale up much faster than businesses that have been in existence for long, eating into their market share and placing a question mark on the future.
Sceptisim is fine on Start Ups but that is not going to stop Start Ups from disrupting businesses. Sceptics who have only been sceptical and not done anything to survive and grow are now completely left behind in the whole scheme of things.
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