Since we started this adventure, we keep asking us why we decided to focus on start-ups and on equity crowdfunding. Would it have been easier to launch a generalist crowdfunding platform such as Kickstarter or Indiegogo?
To be totally honest, the question does not even arise. The whole team at Bee Invested has in common, a passion for startups, innovation and entrepreneurship. So we have been naturally interested in the issues that these specific companies can meet, (and funding is not one of the smallest) but also the benefits that these actors can bring to our society.
But first, what is a startup?
A startup is a young innovative company with strong growth perspectives. It is developing a new product, service or technology to adress new consumption needs and habits. It is often created by a handful of co-founders who are often the only ones working in the company. To grow a startup not only needs a growth market but also substantial capital.
Funding : an essential ressource for a startup
Some really innovative and good ideas do not always meet their market. A startup needs funding not only to build its product but also to reach its audience. Even when the startup is generating revenues, it needs more capital to keep on growing quickly. Timing is of the essence in general, but for tech startups it is even more the case.
With few or no records, startups are bad candidates for banks which prefer to fund well established and less risky companies. As such startups are funded almost exclusively by private capital and are therefore highly dependent on business angels and venture capital funds.
Recruitment ; the required step for growth
Once the startup secures the necessary funding, it has to focus on one thing only : Growth. Organic growth necessarily involves the recruitment of a competent team around the business project. In addition to creating measurable direct jobs, we must also rely on indirect jobs resulting from the startup new market or activity.
A startup that is growing is a start-up that employs or in other words investing in startups creates jobs! In addition to the perpsective of high profits (which we will develop in a future post), an investment in a startup will directly provide short and medium term benefits to the local economy.
What about you? Would you be interested to create jobs while making investment decisions?