Ten years ago investors were looking for the next Tim Berners-Lee. Twenty years ago investors were looking for the next Bill Gates. But now they are just looking for promising startups. They are looking for potential ideas which could be big hit in small time.
Luckily enough, after the dotcom bubble puncture, investors have become more realistic. They have come to realize that failures can occur in the virtual world and everything is not sure-fire gold. But they have also become more tech-savvy and you just cannot fool them with jargon and buzzwords.
Investors know that not all startups are new Microsoft or Apple or Adobe. Its also very crystal clear that the things were entirely different in those times, Microsoft had got the gift from IBM. They started almost as a contract programming operation, and the reason they became huge was that IBM happened to drop the PC standard in their lap.
Investors are looking for Larry and Sergey. Investors are looking for innovators and brave new graduates, who believe in touching the sky. Investors are fast coming to realize the fact that founders of new startups are not market savvy in the earlier time. They are getting to the fact that normally the founders of startups are at large clueless and tentative at the very beginning.
Investors’ role is changing too. They now just don’t toss money in your directions. They’re helpful in doing deals and arranging introductions, and some of the smarter ones, particularly very few, can give good advice about the product or service.
The goal of the investors is for the company to become valuable and they play a pivotal role in making the company a killer success. Most of the founders of startups become dejected when they get turned down by investors. But they shouldn’t feel it that bad and shouldn’t take it to heart. Investors are often wrong and very apprehensive because its their money which goes onto stake. So just try to find a brave investors who is as brave and innovative as your product or service is.