Aussie in the Big AppleFriday, 20 July 2012 13:50
Facebook IPO, the implications for tech start-up funding prospects: Aussie in the Big Apple Blog by Michael Giles
The storm has come
It feels like the storm has come, and the Facebook IPO was the tipping point.
For start-ups that have raised capital, the pressure is on to start making money. For start-ups who are in the process of raising capital, it’s now tougher to convince investors why they should care about you.
Like the mining boom in Australia, or any cycle for that matter – the easy money has been made and only the best entrepreneurs and opportunities will attract investors and survive.
People now seem to care about having a revenue model. What a surprise.
This is a good thing for the industry, because it removes the people who are in it for the wrong reasons, and brings valuations back to reasonable levels.
The pendulum has shifted back in favour of the venture capitalist.
The truth is that behind every “overnight success” there are years of persistence by an entrepreneur for an opportunity they feel so strongly about they are willing to dedicate their life to it.
If you pursue a life of entrepreneurship, remember that it is a road of continuous challenges and change. What matters most is how you deal with those challenges when they are presented to you.
As Alexandre Dumas once said: “Life is a storm, my young friend. You will bask in the sunlight one moment, be shattered on the rocks the next. What makes you a man is what you do when that storm comes.”
Michael Giles is the founder/CEO of Roboinvest, a tech start-up. Michael, an Australian, is based in New York. He tweets @harland.
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