I started this blog back in 2006 with the intention of educating young people on technology and finance as well as to highlight the trends and experiences I was witnessing personally as an entrepreneur. Over the last two years, I’ve realized that I’m more interested in focusing on the environment of early-stage companies.
To clarify, an early-stage company may or may not be a startup. Likewise, startups do not only need refer to technology-focused companies. Even the definition of early stage is disputed. What;’s considered early stage in Boston is likely very different from what’s considered early stage in the Valley.
So what’s so interesting about early stage companies?
First, early-stage companies are often — but not always — run and managed by entrepreneurs who tend to be thought leaders and risk takers. An entrepreneur can be of any age, gender, race or creed…there is no Ivy League, SAT or IQ prerequisite.
Next, many early-stage companies have been ‘enabled’ by a number of exciting macro trends. The internet and globalization have enabled entrepreneurs and investors world-wide to collaborate and share knowledge. Also the barriers to entry for starting companies have never been lower. Overall the idea of work is shifting away from 9 to 5 jobs to focus more on entrepreneurial and project-based work. To me this indicates that globally we’ll see the rate of innovation, and hence number of early-stage companies, increase
Specifically among early stage internet businesses, some of the biggest opportunities are not purely utilitarian, or technological: Companies like Etsy and eBay are really sociological breakthroughs, platforms capable of empowering others to do things such as socialize, learn and even make a living. I still believe the web will drive innovation for years to come, partially because more advanced innovations will require the communication and collaboration the web can provide.
Aside from the ideas and innovations behind an early stage company, I also love the process that enables an early stage company to move from idea to sustainable business. For example, the financing of an early stage company typically involves a third-party investor who must be convinced of an idea’s potential and be willing to assume the risk of failure and loosing money in exchange for the dubious possibility of a long-term payoff. However, even with an idea and capital at hand – an early stage company still faces daunting challenges: distribution, market risk and competition. The likelihood of failure is high.
What’s not to love?
