I had a very intense week, which focused on NYC’s startup ecosystem. I had the privilege to meet with many startup founders and visit different institutions and organizations, which supports new entrepreneurs.
What surprised me the most was the importance of a proper legal framework. NYC recognized the dramatically changing business environment after the financial crisis so they initiated new programs to answer these new challenges and move from the Wall Street based economy, and become an emerging global innovation center. Main goal was to support entrepreneurs, startups to grow in the city and generate new jobs in this sector, and reduce the dominance of the financial sector at the job market.
Few interesting facts:
NYC Entrepreneurial Fund from NYC Economic Development Corporation with $22 million to invest; currently there are 7.000 tech companies in the city,100.000 high-tech jobs, 250.000 high tech related jobs, Dreamlt Ventures 157 companies 254 millions fund, TechStar 524 companies $1.3 billion in founds.
These facts represent that NYC with a robust, clear strategy was able to change very fast ,become the fastest growing FinTech cluster in the USA.
In case of Hungary I see some endeavor to support startups, but I think it is far from the required level. In my opinion, there are a lot to do the with the legal framework and create a stable business environment in the country. Yesterday I just read an article about how Hungarian Tax and Financial Control Administration fine Über users.
During the presentations I learnt a lot about important rules and approaches how to start and not to start a startup. To find the good and true answers on the most basic questions.
Do you have market?
Do you able to get the majority of the market?
Do you have a good team to achieve this?
Facts are interesting here as well, 14% Need/lack of business model, 29% ran out of cash, 42% lack of market. To avoid these very basic failures, I think very important to understand or customers and get feedback from them as soon as possible. Create an MVP and test it, learn from this and based on the take away modify the product, service. Also important to use some kind of strategy and best practice to increase the chance of success. (CAPTURE framework)
Let me add that my favorite thought of the week was: “Revolution doesn’t happen when society adopts new tools. It happens when society adopts new behaviors.” said by Clay Shirky.