There’s a lot of capital in circulation, but it’s not always in the right places. Sure, an investment is a strategic gamble, that’s the nature of the beast. Maybe I’m cynical, but it seems like investors are overly optimistic and entrepreneurs have delusions of grandeur, at a time when both should be getting smarter. The startup world isn’t the game / fad as it was a few years ago, this is the present and future of global small businesses, this is modern economics.
Magic beans are being sold, investors are outlaying capital, crap is being built that doesn’t need to be built, and companies are eventually getting rolled up that shouldn’t have existed in the first place. Angel investors are less savior and more angel’s of death, giving false hope and unfocused bosses to founders / startups rather than a reality check. At this point, problems aren’t being solved as much as more layers to the problems are being created.
Startups are seemingly moving in the direction of banking in the late 90’s and somewhat comparable to the subprime mortgage crisis. Everyone knows it’s foolish and too good to be true, but the money is moving nevertheless. Luckily when the rug gets pulled out, it won’t necessarily send the economy in a spiral.
Maybe I’m being overly cynical observing the trends of the startup scene, or maybe this is reality. Regardless, let’s tighten up that investment criteria boys.