Wednesday, November 16, 2005

Catch them Young..No matter where They are

The story appearing in the Small Business Trends of November 15, 2005, reads as:
Largely because of Sarbanes-Oxley, few startups go public now. For all practical purposes, succeeding now equals getting bought. Which means VCs are now in the business of finding promising little 2-3 man startups and pumping them up into companies that cost $100 million to acquire. They didn’t mean to be in this business; it’s just what their business has evolved into.
Hence the fourth problem: the acquirers have begun to realize they can buy wholesale. Why should they wait for VCs to make the startups they want more expensive? Most of what the VCs add, acquirers don’t want anyway. The acquirers already have brand recognition and HR departments. What they really want is the software and the developers, and that’s what the startup is in the early phase: concentrated software and developers.
More….
I think this is what I wanted to emphasize in my earlier blogs. The tremendous embedded potential in the small business efforts gradually wears out if a timely rescue is not done. And it is good that companies like Google and others have come forward to accomplish.
In my opinion, these efforts should be extended beyond the boundaries of any specific geographical location and globally. For example, in country like India, which is much known for its talents in IT and technology, there are thousands of small businesses which are just waiting for a small push to go past the “sonic boom”.
I think we are approaching a time, where IT is gradually coming out of its old water tight shell and getting discretely mixed up with technology. So the concept of cheap labor and time zone advantages is rapidly becoming a cliché in deciding upon the offshore outsourcing strategy. Superior technology and advance technological concepts are gradually becoming the drivers and countries which were used to be branded as a source of “cheap labor only” can do wonders….particularly the SMEs over there. So catch them young.

0 Comments:

Post a Comment

<< Home