Rick Astley? Actually, it’s the surprising news that Britain racked up 4,009 (count ‘em) tech startup investment deals in 2016, says GP Bullhound and the Telegraph, compared to 2,858 in 2015 and 1,714 the year before that (so, 2014 ?- ed).
Ah, but actually, most of the deals were done pre-brexit, and ever since Britain has experienced a serious decline, says the Bullhound / Telegraph. The trouble is, “Investors have become more prone to risk and reset their expectations, while entrepreneurs have refused to budge on valuations”, says Hugh Campbell, co-founder of Bullhound.
It seems like it’s the smaller, more early stage startups that are suffering the most. The risks of backing entrepreneurs over a pitch deck and a ludicrously strong coffee are becoming too great, it seems.
And yet…you know, founders, you can start a company that isn’t venture backed from the outset. We note numerous articles that have been doing the rounds which have compared early stage angel investors and VCs to “vultures”, plucking the juicy start-up flesh, rich in bright ideas and the blood, sweat and tears of a thousand devs and programmers, leaving just the bare bones of a once promising team with high falutin’ ideas.
This kind of strikes a chord with us. After all, it’s pretty simple to write an article on Medium, give yourself a super smart, glam name such as “Boost Ventures”**, or “Capital Capital”, put on a tie, go to a pitching event, talk about “two and twenty”, and yet…….not really have a clue what you are doing.
It’s all part of the fun, although if caught, these charlatans ought to be forced to wear bibs which say “bad vest, bad investor”, or some such thing.