Are we in the early stages of a new tsunami forming? The kind of confluence that brings together multiple forces that combine into an amazing, swift rise in startup successes?
I think so.
So do others. Here is a must-read for you from author and thinking protagonist, Andy Kessler. He has seen what others have missed: surprising forces are directing our industries and pushing our economies. Would you believe that digital game technologies are the force he is talking about?
Startup entrepreneurs are like that: they spot opportunities that others do not. When the fog covers the opportunities for most people, the startup person sees the opportunity in spite of the fog.
That is one of the first requirements for a tsunami to form: fresh, surprising ideas pop up. Those are the ones that you did not even think about. You can see and read about a lot of them during the current Consumer Electronics Show and in the blogs that react to what reporters have seen recently.
Another requirement is the increasing success of companies in related new technologies. Obvious are the convergence and overlap of smart phones, tablets, wireless, and apps. Then add television over the Internet. And 4G mobile phone networks. And cloud computing. Now you can see a pattern forming. And there are several more.
And of course we have to see the rise of startup valuations to unthinkable size. Think Facebook at $50 billion. That is followed closely by venture investors complaining that the game has switched from VCs setting prices to VCs begging in on the hot startup ideas running around Silicon Valley looking for investors that the founder likes. Such is the state of the money market for seed and first round capital today.
What does this mean for you, the budding entrepreneur? Simple: no excuses, the time is now for you to find an idea to pursue.
It also means established corporations will be on the hunt to buy startups with exciting technologies, before they get too expensive. You can expect to see a lot of quick sales by a lot of startups during the formative stage of a rising tsunami. And as I blogged about last January 4, the IPO market for venture backed startups is returning.
And you will be able to get more favorable terms from investors. Yes it will still be hard work, but it will be easier than in the tough 2008-2009 tough days.
BOTTOM LINE: The signs are clear that a preliminary new tsunami is forming. The signs are there. They point to fresh opportunities in the fog, opportunities you can take advantage of, see before others do. Pick one, prepare it and go for it. Surf the rising wave. Use its energies to propel you to success. Understanding this is fundamental to building an unfair advantage. You can do it.
I wish you The Best on your Adventure!