As leanstartup guru, Eric Reis likes to say in his frequent talks on how startups can get alot done in a short amount of time, “Entrepreneurship is awesome.” And it is. I can think of no other profession that provides the essential elements of personal fulfillment and happiness: growth opportunities, variety of work, interesting people, elements of control, financial reward.
And, it so happens that right now is also the best time in the history of the universe to be an entrepreneur. Micro-VC Mike Maples does a great job of explaining the business reasons for this perfect storm.
And, despite the brain fart that is the Dodd Bill for Financial Reform, which would severely impact the level of angel investing in this country, it has never been easier to raise capital to build your business. You still need to have a good idea, a high calibur team, and a scientific approach to customer development to show early traction. But it has never been easier to get access to capital and guidance.
The reason for all of this activity around early stage investing is that there was a shortage of capital flowing into these companies just a few years ago. I anticipate the number of seed stage deals to surpass historical highs and get to about 70% of all investing activity on a deal basis.
Look out the number of different funding options now. From startup accelerators like Y Combinator and TechStars, to uber-angel Ron Conway and new angelito Aydin Senkut, to the Micro-VC firms such as Baseline and Floodgate, to the new VC firms like Andreesen Horowitz and First Round Capital, and last, the traditional firms adapting to the new industry realities such as Union Square and True Ventures.
Finally, if you add up all of the new sources of capital that has been allocated for seed stage deals, it is close to $1B+. That’s alot of capital at a time when the industry is contracting. Go take some of it.