Are Tech Startups No Longer Viable?
The failure of the Silicon Valley Bank has rocked the world of tech in the past few weeks. It is a unique bank as it specializes in tech startups. With its collapse, several startups are no longer moving forward. Some potential business leaders have decided to walk away. With this sad reality, can we say that tech startups aren’t viable anymore?
Not all startups succeed
Like any other business, not all tech startups will succeed. Regardless of the industry, there are potentials for failure. Anyone who decides to enter the business must realize that it is a risk. It takes hard work, investment, and a little bit of luck. Sure, this bank collapse sets the industry back, but some startups might still succeed.
It’s getting saturated
While people are pointing to the SVB collapse as the reason why many tech startup entrepreneurs are walking away, there are other reasons behind it. The saturation of the industry is one of them. There have been several ideas laid out recently, and not all of them make it big. We have seen innovation after innovation, but not everyone buys it. Besides, it has been a while since something groundbreaking made it to the consciousness of a regular person. It’s not a surprise that things aren’t moving in a positive direction as a result of the industry’s saturation.
It’s always about the money
It might be a cliché, but business leaders shouldn’t always be in it for the money. The reason why companies succeed and last long is because they address people’s concerns. They make tons of money in the process, but it goes back to the company’s values, including their sincere efforts to help. At least, that’s how it seemed when these companies were starting. For the tech industry, that’s not the story anymore. It’s about making money. It’s also about bragging rights. These people lose sight of their purpose.
There aren’t many people entering the field
It’s also sad to see that the industry has not inspired more people to be a part of it. Perhaps, it’s the story of success from industry leaders. Despite not having a degree or dropping out of college, they still made it. The problem is they are more of an exemption than the norm. The engineers doing the heavy lifting have trained themselves for several years before becoming experts. They didn’t make it overnight. They didn’t just wake up one day and decided that they will be a part of the industry and use the shortcut to make it.
The point is there are multiple problems rocking the tech startup industry. The collapse of a trusted niche bank is definitely an issue, and isn’t helping the industry. Hopefully, things will soon move in a positive direction. The people running these businesses should also go back to their core and work hard to deliver services that will help better people’s lives.
Photo Attribution:
1st and featured image from https://www.pwc.com/us/en/library/assets/employee_experience_laptops.jpg
2nd image from https://www.europeanbusinessreview.com/15-best-tech-startup-ideas-for-entrepreneurs-in-2022/
