Evolution: Startups in Current Era


Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor or land. Startups  encounter several unique options for funding.  The total value creation of the global startup economy reached $2.3 trillion from 2015 to 2017. Startups matter. Our data, programs and advice to key ecosystem leaders help them succeed.


The crisis did several things to the world, and with the backdrop of government austerity, and the fear of a looming repeat of the 2008 crisis, many of the top companies globally started to hoard their capital reserves. Some time ago, the New Yorker stated that collectively, American businesses currently have $1.9 trillion in cash, just sitting around.


Google has $80 billion sitting in one of its bank accounts which is making maybe 2% interest a year, but could be used to buy an Uber or even a Goldman Sachs, and make more than 2%… from that investment. In fact, General Motors holds nearly half its value in cash, Apple only holds a third, all in the name of the fear of a rainy day. Quite a bewildering trend in a place where poverty still affects a massive percentage of the global population, so, the crisis kind of made hoarding ok. Which was fine, until the EU started to pick on Apple, Starbucks and Amazon for their tax affairs, with Luxembourg and Ireland coming up time and again? Then the Panama and Pacific papers and Swiss Leaks happened to make matters worse and show the number of corporate affairs that happen under the radar.


This type of aggressive corporate tax efficiency whilst corporations continued to hoard, in times of austerity, was always going to have an effect on the people. People started to see evidence of what they had sometimes suspected, but never really paid much attention to before. People started to be more sceptical of the way big business and governments work together.


It’s always useful at a moment like this to take a side-step and analyse what the Global leaders suggest at times like this. Operating as the World Economic Forum since 1987 and recognised as an international organization since 2015, the Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. According to the World Economic Forum report, there has been $ 1.4 billion investment in Financial Technology companies in the Blockchain area alone in the past 3 years.


This is almost 1% of all the cash of all American businesses, and you would want to assume the Banks are probably sitting on a few dollars here and there, which could mean that the future is slightly brighter than we all thought! And there are springs of hope to look out for in this area that could have a big effect on all of us. Blockchain has been on the agenda of the World Economic Forum for a few years now.


In January 2015, however, it really hit the scene with aggressive predictions made by the Forum of virtual currency exchanges gaining up to 10% of global FX transfers. Blockchain is the platform, but many people will have heard of Bitcoins, Litecoins, Altcoins and others as they are more spoken of in the media; however these are just products on a complex platform that can do far more than transferring currency.


Blockchain can make immediate digitally signed transfers of anything virtual or web-based with no substantial running costs once applications are created – contracts, money, agreements, virtual services and anything like this. And Blockchain is the buzzword in Fintech StartUps as well as many other StartUps.


To give the story a little more background, I think we can all agree that Capital Markets are a good indicator as to what returns on investment have been available the last 5 years. And as indicators, let’s have a look at some of the returns on some of the best stocks over the last few years: Disney has gone up from $ 43 to $ 110  with 255% return, Amazon has gone up from $ 200 to $ 1500 with 800% return, Netflix has gone up from $ 10 to $ 295 with 2800% return and Bitcoin the Virtual Currency traded on a Blockchain Exchange Platform has gone up from $ 20 to $ 10,000 in the same period with 10000%+ return.


However, as a return, and against the $ and even some of the most profitable investments on earth, it does appear that Virtual currencies may have their place in the future. They will almost certainly affect the Disruptive Financial Technology revolution that is now becoming a dominant movement in both corporations and the StartUp industry.


Since the recent recession and at least partially sparked by it, a real resurgence of entrepreneurial spirit, and more startup activity than ever before have been witnessed. The days of the job work mentality are thankfully waning, with more people looking to get satisfaction by making the world a better place, rather than just tolerating brain-numbing work to fund enjoyment elsewhere.


According to a latest report, the entrepreneurial rate in the US is already well above the dot.com bubble of 15 years ago, although it has slipped a bit from the high point of 320 new 

entrepreneurs out of 100,000 adults. It still adds up to over 20 million non-employer businesses out there, with more starting every day. There is additional encouraging news for aspiring entrepreneurs on many fronts. Valuations of successful startups

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