As an entrepreneur, there can be no greater encouragement than the widespread and continually rising wave of exciting new Startups emerging in every industry. In all my interactions with the young generation of business people that are currently coming into their own, I have been consistently impressed by the innovative ideas that are driving their enterprises. New technologies and their applications are constantly emerging from R&D labs around the world. However, what is truly remarkable to me is the pace at which business models that leverage these advantages are appearing, to take advantage of these breakthroughs.
One of the most remarkable changes in human societies around the globe, is the accelerated rate at which the evolution of ideas is being embraced. In our long history, we humans have invested a lot in creating better, more organized societies. It was often the case, in the past, that such advances resulted in civilizations playing it safe and sticking to a way of life. In fact, every historical civilization eventually fell into some sort of ruin and disarray because of this tendency to rest on its laurels. Perhaps for the first time in the long journey of human civilization, we are not only masters of tremendous technologies, we are also seeking to constantly improve further on their capabilities. In my opinion, a change in attitude is at the center of this new state of being. Tradition may have frowned upon those introducing a new way to do things, but the greatest strength of the current version of human civilization is the ability to move on to a better model, as soon as it demonstrates its feasibility and advantages.
The new generation of entrepreneurs embodies this evolution in perspective. From the rather derogatory ‘upstarts’, the label these highly motivated changemakers have proudly adopted is ‘Startups’. While this reversal in language might be accidental, it’s certainly a coincidence that captures a remarkable evolution – apart from perhaps demonstrating the universe’s sense of humour. What is not a matter of chance is the problem-solving and opportunity-seizing mindset that is driving this wave. All around the world, an emphasis on education has resulted in a better informed and more technology savvy generation. What’s more, the conscious and unconscious acceptance of the scientific temperament has resulted in the confidence that technology can solve any human problem. It cannot be denied that the most powerful enabling force in the world right now, are the rapidly emerging tech-driven solutions that are empowering us. A generation that takes instant, on-the-move access to information for granted, was always going to be one that would drive vigorous change, and they have not disappointed.
The smart money is on Smart Solutions
One of the biggest challenges that any new business model faces, is the availability of initial capital. I remember being a young man full of dreams and ideas, trying to make my aspirations come true. Naturally, since like attracts like, I also met many others with similar motivations in my journey. In that era, several bright minds and innovative ideas met with no takers, simply because the individuals pursuing their implementation had no access to capital and could not convince investors to back them. The startup culture of today would have been far less influential, if venture capitalists and smart investors had not recognized the immense potential for growth that these disruptive ideas represent. The contribution of an organized and committed class of investors, who have gone beyond passively providing funds, to active mentorship, cannot be underestimated.
The dotcom bubble of the early nineties might have gone too far into speculation mode, but I believe it represented the seeds of a change in mindset about entrepreneurship. It took a couple of decades, but the right technologies, right applications and the right innovators are now thriving in an investment climate that realizes the potential for rapid, pathbreaking and massive growth. Far from the experience of the dotcom bubble acting as a deterrent, it actually cleared the path for this new wave of startup entrepreneurs. Investors have demonstrated the foresight to know that what was wrong with the previous attempt was not their enthusiasm for technology, but whether or not it was being harnessed to solve a real problem or creating new services.
The earlier generations of entrepreneurs were used to having to work extremely hard to secure finances from conservative traditional mechanism such as banks. Even the few speculators that one could try to convince to come on board as investors back then, were far more likely to be supportive of established business models. This has been completely flipped around now. Realizing the potential returns at relatively low cost, investors are now flocking to startups in a sort of gold rush, eager to find the nugget that will generate a fortune. This is actually not as risky or speculatory as it may sound at first. The previous generations of business ventures were often brick and mortar enterprises, which resulted in slow but steady growth, if they were successful at all. The new model of tech enabled startups often have the potential to deliver profits that are several dozens of times higher than initial capital outlay, even fairly early in their lifespan. This potentially exponential growth has emboldened a new generation of investors and, fortunately for the rest of us, greatly increased the chances for a good idea to find the backing it deserves. Successful Startups make the cut because they emerge from the urge to solve the problems of people. It’s this inclination to resolve and overcome an issue that drives the innovation, and the resulting disruption manifests as a huge valuation. The fact that the business model is concerned with innovating towards a better and more enabled world is what I like best about it. And it is this commitment that makes scaling to Unicorn proportions, as it is termed nowadays, a reality for these start-ups.
A new model of business that creates advantages for us all
Setting aside my enthusiasm for this new way of doing things from a purely entrepreneurial perspective, the greatest advantage it offers is that society at large is able to benefit from a better way of doing things much faster. Which of us has not seen news reports of a breakthrough idea that the article or news story claimed would be commercialized in a few years, only for us never to hear of it again? Far too many great innovations have never seen their potential realized, in the past, simply because they could not find the right context or support at a crucial stage in their development.
What excites me most about the startup mindset is its eagerness to bring an idea to market and try to reach the intended target audience for the solution it is presenting. This rapid development of ideas, in my experience, is not done haphazardly either. An organized and well-considered methodology has evolved that filters, refines and packages the solution very effectively. It’s just that this process has now become far quicker and more streamlined than was traditionally the case. As an enthusiastic supporter of tech-driven change, I feel this approach, which puts to the test whether or not an idea has legs, is a far more vibrant, dynamic and – frankly – exciting way to go about bringing innovations to market. In life one can often miss the boat simply from things taking too long or putting all of one’s eggs in a single basket. This new ecosystem of startups is able to go beyond both these limitation, by seizing the right opportunity at the right time, as well as allowing a surge of innovations to come to the fore and letting market forces decide which will be adopted.
I don’t see this model of business creation as ‘disposable’ or less worthy of being taken seriously than previous versions. Speed does not equate being frivolous about something, it can often be a result of conviction meeting opportunity. It’s often said that at the end of our lives we regret the things that we didn’t do, rather than the mistakes we made. The startup culture is exciting and inspirational to me, because its ideas are often the perfect solution and it has the drive to demonstrate this to the market right away. This is not a mindset that wants to regret not having pursued its ideas to the hilt.
Conclusion
Mindset is usually an outcome of many different factors. It is of its time and place. Often a disruptive idea stems from a new mindset that is in opposition, to some degree, to the existing paradigm. Even if it represents what best fits the state of the world, too often it is in competition with a more powerful and established rival. Having seen the last few decades of a century in which revolution was defined by bloodshed and chaos, what I find most satisfying and thrilling about the startup culture is that it seeks to reclaim the title of ‘revolutionary’ for far more positive outcomes. These are exciting times to be an entrepreneur, and I find myself invigorated by the fresh and innovative mindset of the startup culture.
