Two Predictions for Founders and Investors in 2014

January 13, 2014

12:23 pm

Tech companies will push into the mainstream. 2013 brought a number of successful tech IPOs, 388 M&A events (according to NVCA/Thomson Reuters, the average value of disclosed deals was $161M), clarity around crowdfunding/general solicitation, and companies like Uber Under Armour, Simple and Nest pushed technology further into industries that have traditionally been… well… traditional. We’re going to see more mention of technology companies in the nightly news this year and that’s a great thing for everyone involved. [Tweet]

Early-stage tech investors are going to pull back. For founders raising $50K-$500K, times have never been better – there are >1,600 accelerators and >25,000 investors listed on AngelList currently. The challenge is that while the number of early-stage investors has continued to increase over the past few years, the later stage capital continues to stay concentrated within a few firms and they can’t possibly invest in all of the seed funded companies currently available. In other words, we’re going to see a lot of early-stage companies run out of money in 2014. Most will fail because they can’t find a business model but some, unfortunately, will fail because they simply couldn’t get above the noise. [Tweet]

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Founder at Disruption Corporation, Partner at 500 Startups, EIR at USCIS / DHS, I grow startups and small businesses. You can find me in DC, SF and at 35,000. I write a weekly newsletter for founders, angels and professional investors. You should signup now.

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