fbpx

How Easy Is It to Create a Startup in 2022?

Espresso Capital venture debt for startups

Startup companies have become very popular over the last fifteen years. People of all professional backgrounds try their luck by investing their life savings in the building of companies that promise to offer revolutionary products or services in an effort to attract investors and in an effort to secure a commercial future for those involved in the project. The problem is that sometimes, the market is not ready for ideas that one would consider derivatives of “thinking outside the box”. Many startup projects fail during the first stages of their operation, both because they cannot support the company’s expenses as well as because the product or service is way too complicated for the average business investor.

A Fun Concept but a Tough Reality

Creating a startup is not as easy as movies and series make it look. The business people involved in the project must invest their money and their time in something that may not pay off. Embarking on a startup journey can mean no time for fun activities such as watching Netflix, playing Quantum Roulette, Sudoku or FIFA 2022, it can mean having to do two jobs in order to fund your project, and it can mean finding a lot of shut doors when you ask others for help. Most investors will turn their back on what you have to offer, either because they do not understand what you are trying to market or because you may not have a product that might be ready to launch tomorrow.

The Theranos Case Has Shaken the World of Startups

Even though there are many examples of successful startups that managed to establish themselves in the market, there are startups that will never make a breakthrough in the world because they will lack the necessary support, regardless if their product or service can revolutionise the industry. This situation has gotten a lot worse after the Theranos scandal, as investors have become a lot more cautious when it comes to risking their money and their reputation. Theranos was once worth almost ten billion dollars and everybody wanted to be part of it, but when the public became aware of its malpractice, the world of startups changed forever.

Dare to Dream

The new startup reality may be very hard for entrepreneurs and investors, but there are always products that end up making a huge difference in the world. Not all biomedical startups are like Theranos, and there are many companies that are really worth the support of investors and of individuals wanting to fund something innovative. Sometimes, all it takes for a device that will save lives is a little bit of funding or a little bit of volunteer work. The important thing for entrepreneurs or inventors is not to lose hope and not to stop working on developing their product.

Take Advantage of Today’s Technology

Technology has helped most industries take giant leaps forward, and the more businesses trust technology, the further they can go. This does not only apply to established companies like Apple or Amazon but also to startups trying to offer something new to the market. If there are ways for you to improve your product or service by adjusting it to today’s technological standards, then it is worth investing time in updating what you are building, regardless if it leads to delays in the launching process.