(Reuters) – Britain’s tech start-up scene was having a bumper year in terms of new company creation, fresh funding and acquisitions by global tech players before voters decided to leave the European Union in Thursday’s referendum. Now high-profile companies are threatening to pull out or slow down plans to enter the UK market, international employees…
As a startup founder, should you hold on to your 100% ownership of the company or let go of some equity in the funding process? Bottom line, are you going to end up an employee again? And how does the pie-cutting work?
In a few words – graphics in fact, Funders and Founders have put together a great piece of information. An infographic about the splitting of equity, from startup idea to IPO:
“A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well.”
Keep reading on the Funders and Founders website, the full article is HERE.
[Please note that I initially posted this article on Medium where you can read it all]
“What is a long read when it is about a whole country’s future?”
Policy Hack happened. The posts, articles and interviews are now gone. The first takes from the recent activity suggest that the effort still needs to be structured. There has been a lot of buzz and excitement with a whole startup community happy and eager to push its ideas to the current government but, like for any startup, thinking and planning is crucial.
There have now been some ideas bounced here and there and a beta done. It is now time to sit down for a second and make use of the whiteboard.
This is demonstrated by the simple fact that StartupAus “will now curate the content” of the OurSay posts and compile it with the ideas from the policy hack. A task which should have happened prior to the policy hack, not only to bring value to discussions but also define the “champions” who would be invited to discuss these ideas during the hack.
In this particular case, the thinking will be done after the acting. No time wasted but, at the same time a whole day resulting in standard takeaways and some “niche” ideas.
Overall, the policy hack day has been a great success, bringing members of the ecosystem together and feeding the government with smart input and directions. Well done Wyatt Roy and all! However, sometimes, noise is too much noise and critical items may be overlooked. Or, at least, not mentioned a lot in the variety of posts, tweets, etc. published after this event.
Building on experience and bringing an outside look to the table, here are my main talking points about innovation and startup success for Australia.
SXSW, South by South West, the one massive event for all things, music, film and interactive (startups, innovation, etc…) has made the headlines for a different reason than the usual hype and noise. After cancelling two panels about harassment in the tech industry, the event organisers have faced a serious backlash and the likes of Buzzfeed and Vox even threatened to withdraw from the event.
Between the outrage and the risk to lose two prominent media (which could have created a move followed by more), SXSW have now re-instated one of the panels and are even thinking about having a forum about online harassment according to Recode.
Announcements are yet to come but it seems SXSW have successfully been bullied into accepting to speak about bullying and harassment.
Hype and unicorns
Startups now become unicorns, everyday valuations go through the roof and the tech journos put funding news on a pedestal.
However, just let go of the noise and headlines for a second. What do you get at the end of the day?
A fait amount of bullshit and not necessarily results.
Funding and valuation have become the ultimate fantasy in the startup world. But is the point of any company out there not to actually MAKE money? Companies are born and die but they share the same goal: generating revenue and creating value.
Yet, startups have been allowed to play with millions and burn them for the past 10 years while the world would not care.
The “bubble” so many are speaking about at the moment is here. Created by letting kids in at an open bar and making it a trend.
The bottom line of this trend: the hype allows the “cool” kids to get millions when the companies with a business plan do not manage to raise the few do-or-die hundreds of thousands of dollars they would need to pass the tipping point and generate revenue – and profit – out of a solid business model. Yes, most founders I know do not have time to ask you what your superpowers are as the one and only question when recruiting but are rather interested in your background, achievements and personality.
News outlets are highlighting this trends too but seemingly for the sake of it when tech “writers” keep producing pieces about funds raised at the same pace, alternating with the neighbour’s – or drinking buddy – latest “tech”/fun/random project.
The bubble is there. It is just not a financial one, just a hype one.