Have you got the 'Tech Factor'?
12 October 2012
Technology is without a doubt one of the most exciting industries to be working in today. With so many niche areas of potential business and huge amounts of money to be made, it is great to see such high profile individuals getting involved in this fast growing sector.
Tech companies almost always require VC investment to get off the ground. In order to achieve this, it's essential to prove that the business can grow rapidly. Rather than being tied into a long-term deal, entrepreneurs benefit from devising an achievable six-month plan and requesting the cash flow needed for this period. This ensures that both parties benefit from the terms, that they are not tied into a restrictive contract and that growth isn’t compromised by immediately having to ask for more funds.
The internet might seem like a strange choice for the "king of pop", but VCs don't need to fully understand the businesses they are investing in: they need to be able to judge which ideas with the right person at the helm have the X Factor. Personal drive, the ability to learn from one’s own and others’ mistakes, and speedy decision-making are all vital for business success.
The most important ingredient in the VC/entrepreneur relationship is however total mutual belief and trust. In order to have a productive and profitable partnership, investors must offer reasonable terms and provide support in both the good times and, inevitably, when the going gets tough.
Iconic brands like Apple and Facebook, and the increasing crossover between our offline and online lives, means that there is an undeniable buzz around technology and in particular, the internet right now. This makes it one of, if not the most, inspiring and motivating places to work at the moment. In the same way that not everyone can sing and dance, not everyone can come up with a killer idea that will be The Next Big Tech Thing. For those that can, it's a thrilling ride.
See also: Simon Cowell – the newest VC on the block?
Dominic Trigg, managing director Europe, Rocket Fuel