Startups have the potential to create innovative products and services and create much needed jobs in an economy, but in recent times there have been a large number of startups that have been founded, but just ended up a product of hype and buzz rather than have any real meaningful progress made in the sector.
A startup is any company operating in a risky industry, experiencing rapid growth or showing signs of growth potential. They are more commonly seen in established markets such as technology and the internet, but recently, the variety and volume of startups have grown substantially, leading to a saturation of the market with low quality products or ideas.
Many of the issues stem from the fact that it is now easier than ever to launch a startup. Online resources, crowdfunding platforms, and the advantages of technology in general have all made it much easier to start a company and get it off the ground. This has led to many people getting involved in the startup world without the proper knowledge or experience of the industry. The result is that there are a lot of startups that don’t have the capacity or capability to create a valuable product or service and provide a real benefit to customers.
The other issue is that the number of investors and venture capitalists that are willing to invest in startups has increased exponentially in recent years. This is mainly due to the prevalence of technology in our lives now, and the ever-growing investment climate. Unfortunately, this has resulted in a great deal of investments being placed in startups that simply don’t have the means to meet their expectations or to take off in a meaningful way.
We can only hope that this current glut of low quality startups will soon give away to a more sound and structured approach to startups. Investors need to think carefully before putting money into any startup, and entrepreneurs need to take the proper time and effort to develop their ideas and products before seeking additional funds. In this way, at least we can be ensure that the good startups will get the attention and investment that they need, and the bad startups will be weeded out.
