"[I]ndustrial manufacturing businesses are becoming more attractive to investors, as they should, when the potential for significant innovation there is so enormous. The venture capital community has sometimes underestimated the probability of success for tackling difficult problems while overestimating the ease of solving simpler ones. However, the hard problems in the manufacturing and industrial sectors are the ones that truly need attention. Solving these problems can make a difference to the world in ways that consumer solutions just can’t. And investors are turning to them." (Martin Vares, Co-Founder and CEO of Fractory) For the past three decades, I have been an investor, operator, consultant, and board member within the manufacturing sector. The evolution of manufacturing technology has been spellbinding to experience - and the financial returns to investors at companies which embrace change and pursue intelligent advances and growth have been substantial. Companies like Tesla and Apple were manufacturing startups as much as they were tech startups. Given the rising populations and continuing transformation of emerging economies alongside an evergrowing - and everspending - middle class across the world, the market for profitable startup manufacturing companies has never been more attractive. And with the availability of capital (in the form of dry powder sitting in VC and PE funds) paired with the rapidly dropping costs of technology and automation, the ability to create and grow a manufacturing startup has never been more accessible or affordable. #manufacturing #startups #venturecapital #investment #vc #americanmanufacturing #manufacturingtechnology #tech #manufacturingstartups #ROI #drypowder #growthindustries #innovation
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Why Do Most Startups Choose Digital Over Physical Products? Answers: https://lnkd.in/gyAx_sSF #Startups #DigitalProducts #Manufacturing #Entrepreneurship What do you think is behind the trend of most startups focusing on digital products, while only a handful dive into manufacturing and producing physical goods? ?? Is it that creating and scaling software companies is just easier and faster? Here are a few points to consider: Scalability: Software can scale quickly. You can reach thousands (or millions!) of users with a single product launch, while scaling a physical product often involves significant investment in production and logistics. ?? Lower overhead: Digital products typically don’t require stock, warehousing, or shipping. This means less financial risk upfront, making it more attractive for startups looking to bootstrap their way to success. Investor focus: Many investors have made their money from successful software ventures, leading them to favor digital startups. This rich history can create a cycle where capital flows more readily toward digital solutions, making it a less risky bet for many. However, it’s not all sunshine and rainbows. Here...
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Why Do Most Startups Choose Digital Over Physical Products? Answers: https://lnkd.in/gMtU9kCm #Startups #DigitalProducts #Manufacturing #Entrepreneurship What do you think is behind the trend of most startups focusing on digital products, while only a handful dive into manufacturing and producing physical goods? ?? Is it that creating and scaling software companies is just easier and faster? Here are a few points to consider: Scalability: Software can scale quickly. You can reach thousands (or millions!) of users with a single product launch, while scaling a physical product often involves significant investment in production and logistics. ?? Lower overhead: Digital products typically don’t require stock, warehousing, or shipping. This means less financial risk upfront, making it more attractive for startups looking to bootstrap their way to success. Investor focus: Many investors have made their money from successful software ventures, leading them to favor digital startups. This rich history can create a cycle where capital flows more readily toward digital solutions, making it a less risky bet for many. However, it’s not all sunshine and rainbows. Here...
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Why Do Most Startups Choose Digital Over Physical Products? Answers: https://lnkd.in/gs-mckPn #Startups #DigitalProducts #Manufacturing #Entrepreneurship What do you think is behind the trend of most startups focusing on digital products, while only a handful dive into manufacturing and producing physical goods? ?? Is it that creating and scaling software companies is just easier and faster? Here are a few points to consider: Scalability: Software can scale quickly. You can reach thousands (or millions!) of users with a single product launch, while scaling a physical product often involves significant investment in production and logistics. ?? Lower overhead: Digital products typically don’t require stock, warehousing, or shipping. This means less financial risk upfront, making it more attractive for startups looking to bootstrap their way to success. Investor focus: Many investors have made their money from successful software ventures, leading them to favor digital startups. This rich history can create a cycle where capital flows more readily toward digital solutions, making it a less risky bet for many. However, it’s not all sunshine and rainbows. Here...
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?? The current environment is highly favorable for manufacturing startups, with investors increasingly interested in solving complex industrial problems rather than simpler consumer issues. Despite the challenges of high capital requirements and the need for long-term vision, industrial startups have significant potential for innovation and impact, particularly in terms of sustainability and global betterment. Now is a prime time for entrepreneurs to focus on meaningful manufacturing solutions that can drive substantial change. https://lnkd.in/dk_aFZES
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What Makes Tech Special? Superior Growth Potential and High Margins “Startups can also grow exponentially, and we see the same pattern there. Some manage to achieve high growth rates. Most don’t. And as a result, you get qualitatively different outcomes: the companies with high growth rates tend to become immensely valuable, while the ones with lower growth rates may not even survive.” –?Paul Graham Venture capitalists are looking to offset their high risk of betting on a team versus buying into a running business by investing in innovations that have the potential to scale rapidly and teams that can execute. Technology provides a superior advantage over traditional businesses in terms of margin and the speed of growth with less CAPEX (if we exclude hardware and biotech). The opportunity set a venture capitalist is ideally looking for has the potential for superior growth in a capital-efficient manner by solving a large problem that people/companies are willing to spend money on. High growth, customer lock-in through high switching costs, network effects, pricing power, and unique market position justify a high future valuation needed to achieve the returns. The total addressable market size (TAM) and purchasing power are critical indicators for the scalability of a product, or if it's on the capital-heavy side, whether it is a unique tech innovation (such as hardware, LLMs, etc.) that will be superior. An underlying new technological innovation can trigger a shift that enables certain business models. What started with first hardware investing, then the internet, then mobile, and now the platform shift to AI enables different business models and creates completely new markets. Timing is a critical factor in the success of a venture; many ideas that failed during the dot-com era found success later on, as the market size of users using the internet back then was too small but has rapidly increased since then. In the African context, in many Sub-Saharan countries, infrastructure is an impediment to, for example, e-commerce advancement, where margins are thin and the logistics overhead that comes with patchy roads makes it a slow-growth, low-margin business. #VentureCapital #TechInnovation #Startups #GrowthPotential #AfricaTech #AI #EmergingMarkets #Entrepreneurship #Investment #Scalability #TAM #PaulGraham Selma Ribica Robert Smith Jack K. First Circle Capital Ming S. Kwan Prosper Atukwatse
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Flash Info #226- Capital Market Startup Vs Enterprise **Startup:** - A startup is typically a new, smaller, and fast-growing business with an innovative product or service. - Startups often have a flat, flexible organizational structure with fewer layers of management. - Startups tend to be agile and nimble, able to quickly adapt to changes in the market. - Funding for startups often comes from venture capitalists, angel investors, or crowdfunding rather than traditional bank loans. - The primary goal of a startup is rapid growth and scaling to achieve a large market share or get acquired. **Enterprise:** - An enterprise is a large, established organization, often a corporation, with significant resources and infrastructure. - Enterprises typically have a more hierarchical, bureaucratic organizational structure with multiple management layers. - Enterprises tend to have more rigid processes and policies in place to maintain stability and consistency. - Enterprises are often risk-averse and slower to adapt to market changes compared to startups. - Funding for enterprises comes from traditional sources like bank loans, public stock offerings, or retained earnings. - The primary goal of an enterprise is to maintain and grow a stable, profitable business over the long term. The key differences are in size, organizational structure, funding sources, risk tolerance, and overall business goals. Startups prioritize fast growth and innovation, while enterprises focus on stability and long-term profitability. Both have their advantages and challenges depending on the specific business context. #stockmarket #startup #investors #ethiopiadiaspora #moneymarket #commoditymarket #derivatives #ethiopiabanks #ECMA #founders #capitalmarket
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??The production cycle transforms inputs into market-ready products or services. For #startups, this includes both physical goods and #digital offerings like software solutions or #innovative services. ?Full article: https://lnkd.in/g_6VaUX8 #Scaleup #Investment #Innovation #Entrepreneurship #TechTrends #Technology #Leadership #Growth #Success #Management #Enterprise #Funding #StartupSuccess #BusinessGrowth #OpenScience #OpenAccess #Business #Startup #Startups #Entrepreneur #SME #Tech #EU #Europe #AngelInvestor #Venture #Businessman #VentureCapitalists #Crowdfunding #RAISE #InnovationCulture #FutureOfBusiness #DisruptiveTech #DigitalTransformation #SmallBiz #FounderLife #InnovationEcosystem #AngelInvesting #SeedFunding #TechStartup #BusinessStrategy #VCInvesting #StartupLife #TechInnovation #FundingRound #CorporateVenture #BusinessLeadership #StartupCulture #ScaleUpNation #EntrepreneurialMindset #InvestmentOpportunity #StartupCommunity #TechSavvy #EmergingTech #BusinessDevelopment #FounderJourney #InvestorNetwork #BusinessMentorship #StartupEcosystem #TechInvestor #ScaleUpStrategy #EntrepreneurialSpirit #InnovationHub #StartupIncubator #VCCommunity #InvestmentPortfolio #StartupAccelerator #DigitalEntrepreneur #VentureFunding #SeedCapital #GrowthMindset #TechEntrepreneur #StartupNation #InnovationStrategy #AngelNetwork #VentureCapitalFirm #Fintech #TechInnovationHub #BusinessNetworking #StartupAdvice #USA #InvestmentCapital #AngelInvestment #StartUpVenture #TechInvestment #BusinessIncubator #InvestorRelations #BusinessInsights EBAN - European Business Angel Network EURADA - European Association of Development Agencies SERN - Startup Europe Regions Network International Consortium of Research Staff Associations (ICoRSA) FUNDECYT-PCTEX
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For years, corporations have relied on external solutions to drive innovation. They acquire startups, license technologies, and invest in external ventures. On the surface, it sounds like a smart strategy. But here’s the hard truth: Relying on external innovation is expensive, inefficient, and unsustainable. Corporations often spend millions acquiring startups, only to find that the integration fails. The cultural mismatch between startups and corporate environments leads to friction. Worse, the innovation they’re seeking doesn’t align with their long-term goals. At Echo, we believe the next wave of innovation doesn’t need to be acquired. It’s already inside your organization. Your employees know your business better than anyone else. Your resources have the power to scale faster than any startup. And your networks give you unparalleled access to markets. The challenge is unlocking that potential. Most corporations don’t have the systems or frameworks to support internal innovation. That’s where Echo comes in. ? We build internal venture ecosystems that foster creativity, experimentation, and growth. ? We empower employees to think and act like intrapreneurs, giving them the tools to own and execute ideas. ? We create scalable ventures that align with corporate goals, driving measurable impact. The result? Corporations no longer need to depend on external startups to stay competitive. They become the source of innovation in their industries. The next billion-dollar ventures aren’t out there waiting to be acquired. They’re already within your organization, waiting to be built. Let’s unlock them together.
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?? The latest update is out, and it’s essential to read! In today's fast-paced market, many startups face significant challenges, with some nearing breakdown. However, this situation creates a unique opportunity for corporations to acquire innovative talent and technologies that can fuel future growth. ?? Now is the ideal time for corporates to invest in struggling startups. Many emerging companies are finding it hard to secure funding, allowing corporations to step in and acquire them at potentially lower valuations. This approach not only facilitates strategic growth but also helps established companies integrate cutting-edge solutions. ?? Investing in these startups can yield substantial rewards. They often possess innovative ideas, agile business models, and access to niche markets. By acquiring them, corporates can breathe new life into their offerings and drive digital transformation. While there are risks, thorough due diligence can help manage them. Companies that adopt a forward-thinking mindset can rescue failing startups and secure a vital foothold in the tech-driven future. ?? Now is the time to embrace innovation and unlock new growth avenues. Seize the opportunity to not only save a startup but potentially propel your corporation into its next phase of growth! #Innovation #Startups #CorporateAcquisition #BusinessGrowth
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Investor: Do you know where your technology stands as a startup? Founder: .......?? Understanding TRLs can significantly impact your startup’s journey. Learn more about TRLs and how they can help you secure funding and scale your innovation! Understanding Technology Readiness Levels (TRLs) is crucial for startups pitching to investors, as it demonstrates the readiness of their technology and the path to market. Here’s a breakdown of the 10 TRL levels, which can help startups understand where they stand and how to communicate their technology's maturity effectively: 1?? TRL 1: Basic Research Principles observed and reported but no experimental proof available. 2?? TRL 2: Technology Formulation Concept and application have been formulated. 3?? TRL 3: Applied Research First experimental proof of concept. 4?? TRL 4: Small Scale Prototype Technology built in the lab (Ugly Prototype). 5?? TRL 5: Large Scale Prototype Technology tested in a relevant environment. 6?? TRL 6: Prototype System Tested in an intended environment close to expected performance. 7?? TRL 7: Demonstration System System prototype demonstrated in an operational environment at pre-commercial scale. 8?? TRL 8: First Commercial System Manufacturing issues solved. 9?? TRL 9: Full Commercial Application Technology available for consumers. By understanding your TRL and matching it with the appropriate investment stage, you can set realistic expectations for both founders and investors. This clarity helps in securing the right kind of investment at the right time. Connect with me to learn more about TRL and share your experiences! Let's build successful startups together. #Startup #startups #Entrepreneurship #NicheMarket #Focus #Growth #Agility #Customer #Brand #Identity #StrategicPartnerships #DataDriven #Scalability #LeanOperations #Resilience #Adaptability
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