THE INVISIBLE FORCE THAT DEFINES A STARTUP’S FATE
Flashpoint
Since 2012, we have been investing in U.S. and Western European tech companies originating from Europe and Israel
#1?THE INVISIBLE FORCE THAT DEFINES A STARTUP’S FATE
Startups die in two ways. Gradually. Then suddenly. This phrase, adapted from Hemingway’s The Sun Also Rises, encapsulates how most startups meet their end. Their decline begins subtly—missed opportunities, delayed decisions, or faltering execution. Then, a tipping point arrives, and they collapse seemingly overnight. Everything needs to move approximately seven times faster than the regular world outside.
#2?TWO-THIRDS OF STARTUPS DON’T LAST 10 YEARS
Of all the businesses started just 10 years ago, only one-third are still in existence. That’s according to data from the Bureau of Labor Statistics. One in five startups fail in their first year. Agriculture and forestry businesses survive the longest (but only half were in operation 10 years later), and a quarter of mining, oil and gas firms made it that far. The bottom line is that a whopping number of new businesses – about 66% – go out of business within a decade.
#3?BALTIC BORN STARTUPS WITH GLOBAL RECOGNITION
The Baltic region is recognized as the leader in deploying digital technologies to create brand new business models. People from the Baltics possess a talent for finding fresh ways to take advantage of tools and tech solutions that almost anyone in the world can access, and it’s the main reason why so many standout startups originate here. Baltic countries tend to generate startups that turn the existing technologies into practical solutions to everyday problems.?
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#4?HOW CAN STARTUP FOUNDERS RAISE CAPITAL WHILE EXPECTING?
Female founders are grossly undervalued. Though women make up 38% of business owners, startups with only female founders consistently receive just 2% to 3% of venture investment. That speaks volumes about long-standing gender biases in the entrepreneurial space. In a system where women must already work harder to be recognized, the added complexity of pregnancy can feel like an almost insurmountable hurdle.
#5?THESE WERE THE WINNERS AND LOSERS IN A BORING YEAR FOR STARTUP IPOS
Just a handful of U.S. tech unicorns made it to market. Biotech offerings, while more plentiful, are also running well below prior highs. Aftermarket performance is also not following a dramatic storyline. There are a few that are way up from their debut price, some that are way down, and a lot that look relatively flat. Still, we can see some standouts in the mix. Below, winners and losers for venture-backed tech and biotech companies.
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