Clearly there's a lot of money being poured into start-ups right now, but as you mention... there was also a lot of money being pumped into companies in 1999 and by 2001, the party was over. Will the music play a little longer this time around?
I'm not completely sure. I think back in 1999 you did have more companies getting funded despite complete lack of viable business plans. Some companies like that still get funding these days, but usually a start-up has... you know... at least a vague idea of how they're going to be profitable long-term.
So in some ways I'm more optimistic, but then I see things like the $41 million plus thrown at Color, which I believe essentially has essentially a 0% chance of ever becoming a profitable company.
So I'm not sure. I think the success rate of these companies may be higher than in the past, but not dramatically so.
Still, start-ups are generally good for the economy and they do create jobs... so if billionaires and large investors want to keep funding some of these questionable ideas, I don't really see that as a terrible problem.
DennisQ, Barbara, things are going on exactly as per perspective reported. It seems one of main difference between current trend and the previuos one at "booble time" is related to location of investments. According to IDA Irland, several US startups are boosting again but hiring outside US. Could it be a temporary phenomenon or is it definitely the target (boosting yes, but hiring outside US?)
This is good news for the economy, assuming this is going to be going on for a sustainable time and not just a false sense of growth. I think it is very promising to hear the numbers coming in so far, the key factor is going to see what the numbers look like at year’s end. And if the trend continues to the end of the year, will it still be growing?
DennisQ makes a good point and uses Color as an example.Whether or not the company will be a profitable one is yet to be determined, but investors do like to put money into ventures with a proven management team and in some cases the investors don’t really understand the technology or business altogether.In Color’s case, the CEO Bill Nguyen who is a serial entrepreneur sold his last company Lala, an online music company to Apple has a track record building startups and selling them.This sometimes outweighs all other factors during due diligence with investors.
Good to hear and pleasant to know that tech jobs are opening for hiring. It is quite obvious that many investors are being careful in what they investing in, but getting people back to work is a good sign of revamping the economy. It is a good turning point. I hope it stays.
According to me Startup companies have huge potentials because they are very careful in picking the stake holders and engineers. Now with a groomed economy it is definitely going to be a plus for huge hiring and lot of people venturing into small companies.
I believe Nemos has caught the point, truly; nowadays start-ups have to create not a new bubble era, but a stable era. Hiring as current trend outside US to reduce costs cannot be alone but in pairs with other criteria to sustain a real plan for business, jobs, people and market.
Saranyatil, I am not too sure whether startup are too picky on inverstors and employees but one thing is sure that they (and the people working in them) are full of energy and hope. I have worked in a startup and there is so much freedom to work. Most of the startups do not have hierarcy and try minimal paperwork. Good place to work and learn for fresh graduates!
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.