Your Web News in One Place

Help Webnuz

Referal links:

Sign up for GreenGeeks web hosting
April 19, 2011 10:00 pm GMT

The Seed Stage Dandelion Effect

Two phrases heard often from entrepreneurs are: (1) "I'm looking for a technical co-founder" and (2) "We're hiring engineers, developers, and designers." Unless they have networks to pull from, recruit 100% of the time, or are just plain lucky, their odds of finding the right people are not pretty. For those hunting for technical co-founders, their venture may never come to light unless they outsource development (which creates other issues) or learn how to code, which is a noble pursuit but takes time. For those who have secured seed funds, the hunt for key technical hires can be all-consuming, and as a result, what venture dollars intended for product are spent on human resources. While new companies fight for talent and users, only a small handful will reach Series A benchmarks. The rest will have to scrape by or close shop entirely, with talent dispersing back into the labor market. A number of forces are at play. The cost of building online has fallen dramatically, and the time required has been compressed. User adoption has been accelerated with viral platforms and social networks. In the background, the macroeconomic situation has shaken powerful industries, clustered wealth in fewer hands, democratized innovation, and ignited the mainstream popularity of attempting to building the next Facebook. And, as the amount of capital that has flooded into the seed stage has grown, more and more companies are forming daily, it seems. What will happen to all these companies? Some call this a "seed-stage bubble," but I think that term is not quite correct. Rather, I like to think of it as the "Seed Stage Dandelion Effect."

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/NJneONtwITY/

Share this article:    Share on Facebook
View Full Article

Techcrunch

TechCrunch is a leading technology blog, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.

More About this Source Visit Techcrunch