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What's going on in silicon valley? Are startups really making that much of money or just getting a free ride on investor's expense? Or is valley deluded with young-20-something-programmers who are just starting pet.com variations?
I'm in New York, not in SV but there's a lot startups over here too. I am a contract developer and have worked with startups for about three years. I can honestly say there are founders that are getting a "free ride" on investor expense - taking long vacations over the summer, building product forever and not releasing (this gives founders an excuse not to be out talking to customers - after all, the product isn't re…
I wish I had the gab to cash in on it some... as it stands, I just make and sell my hardware. It's a good living, I paid off my mortgage at 32 and have enough money to not streess and enough free time to write.
There is 200 million Euro of government subsidies (+ private capital) going out to startups in my (rural!) area and I'm taking everybody in. It's crazy right now.
I'm in New York, not in SV but there's a lot startups over here too. I am a contract developer and have worked with startups for about three years. I can honestly say there are founders that are getting a "free ride" on investor expense - taking long vacations over the summer, building product forever and not releasing (this gives founders an excuse not to be out talking to customers - after all, the product isn't re…
I'm in New York, not in SV but there's a lot startups over here too. I am a contract developer and have worked with startups for about three years. I can honestly say there are founders that are getting a "free ride" on investor expense - taking long vacations over the summer, building product forever and not releasing (this gives founders an excuse not to be out talking to customers - after all, the product isn't re…
How do these founders get funded without traction..Everyone i talk to in my network says I need to launch and get traction first, although they like the product so far.
I'm in New York, not in SV but there's a lot startups over here too. I am a contract developer and have worked with startups for about three years. I can honestly say there are founders that are getting a "free ride" on investor expense - taking long vacations over the summer, building product forever and not releasing (this gives founders an excuse not to be out talking to customers - after all, the product isn't re…
There's a perception that raising money is "easy" in the current climate. The reality though is that it's simply not that easy and that there most certainly isn't many founders coasting on beaches. I know a lot of entrepreneurs and founders here in SF/Bay, and every one of them is working much more than 9-5 5 days a week. And none of them got a "free ride" from an investor - but rather went through the slog of buildi…
For the 1%, which has more to do with connections than net worth by the way, it's incredibly easy and any idiot can do it. So, many idiots do.
The difficult part can be what happens after raising money. Some investors are hadns-off and some will micromanage. Some will add and others will detract. Since your investors will determine whether you can get future funding, and will probably make the introductions that lead to partnerships and clients (if you're a service company) you want to make them happy enough that their resources are deployed to your benefit.
The one bit of good news is that "free ride" investors are a minority. Most have too much ego, which can be a force for good (if they help you succeed) or bad (if they try to manage you). They exist, but they're not common. They do seem to be more common in New York than in the Bay Area.
Do not believe the hype out of SV, this is going to crash no sooner than 4 months from now and no later than 16 months from now. Evidence: Housing prices. The property bubble is back, because people think they can flip houses again and make a quick buck. Why is it back? Because people think that other people are actually buying houses to live in for that price because they think there are 100,000 people that FB employs because they are, like, as big as Boeing, right? And, like, they all have like bucco bucks from all the stocks, right?
Surprisingly, Mark Twain has written a lot about this kind of stuff. His "Roughin' It" talks about his time in Virginia City, Nevada and all the leeds that folks would buy and sell from adventures in the silver country. The lessons there are very good.