In the developed world, the last 35 years have been marked by a strong strengthening of the role of technology companies – those projects where a product or service is based on some know-how, expressed either in software code or device, and not just a scheme of selling something at an equilibrium price. Despite the fact that people in the world are the same and do not like to take risks, so when they are asked: “Where do you invest – in a stall that sells Shawarma at the station, or in a group of developers who build an application for contactless payments?”, many will answer that in a stall. And, most importantly, they will be right – the profitability of such an object will be higher than a certain amount of time than a technological startup. When it comes to going out of business, then sell the stall also, in principle, should not be difficult – its cost will determine the location and the maximum volume of sales, and in rare cases – reputation. And now try to sell a flash drive with a product code to a non-core businessman, which turned out to be more expensive to create than renting for a stall for the first 2-3 years?
However, in the United States and some other (Asian and European) markets, technology startups are listed and evaluated and then traded quite high. Thus, according to Redpoint Capital, today the total capitalization of all technology companies exceeds 9.7 trillion dollars. To cite the example of Apple and Google, I think, is unnecessary.
The decrease in the number of companies on the market is a positive fact. In this regard, startups still have a “place to step forward” – major players are interested in increasing their capitalization and they have bought and will buy the projects necessary for their market dominance strategies. However, they have very serious requirements that should be kept in mind by any investor who supports startups at any stage of the company’s life cycle.
Important: if a startup with technology solves the problem of its customers, its creators – and this is not a momentary “wishlist” or very small problems at the level of “defects” of the monsters of the market, then such a startup is very expensive. If you invest in such a startup at a very early stage, even 10 thousand dollars (330 thousand dollars). and get for it from 1 to 5% of the company, then after a certain time (3-4 years with the normal development of the project), if the startup becomes a “billionaire”, these investments will “beat off” even better than currency speculation or investments in metals, not to mention the purchase of “blue chips”.