What are some of the major challenges and trends that are impacting the startup industry?
Daria Abbaei
I believe that access to capital is limiting itself in this economy that is changing so rapidly. We've seen that many entrepreneurs are becoming concerned about their inability to raise capital. They are going out for raises much larger than they had initially planned as they are concerned in the upcoming months it will be significantly more difficult to raise capital. They take precautions to avoid finding themselves in a situation where they run out of money and have a hard time raising funds.
One challenge we have noticed when talking to entrepreneurs is that they want to raise capital, but they don't want the governance and discipline that come with an institutional investor.. Business owners need to look at the big picture- If I were an entrepreneur, I’d much rather own 50% of a $100 million company than 100% of a $5 million company.
What worries you the most about some of the current startups' biggest problems?
One of the things that worries me most is if startups can carry out the plan and roadmap they outlined. Being an entrepreneur is challenging, and successful entrepreneurs typically possess grit, determination, resilience, and the capacity to meet key performance indicators. Therefore, delivery is key for us. It's necessary to determine whether businesses can meet their projections or whether they will be able to launch a product improvement with everything going according to schedule.
What are some of the technological or process elements that you have leveraged to make the project more successful?
I really believe that effective communication is the key to any project's success. Therefore, we maintain one-on-one contact with everyone to ensure good communication in order to make a project or technological enhancement successful. I believe it is crucial to be able to express this internally and clearly to the team as well as to your investors so that you can ask for help and direction when needed.
Do any recent technological trends interest you, perhaps for the future of the startup industry?
Being in the venture capital industry, we must constantly make sure that we are following current trends in order to stay abreast of emerging technologies. I believe that blockchain, machine learning, and artificial intelligence are our team's top trends for the upcoming startup scene. Many of the businesses we've spoken to and those in our existing portfolio make use of these technologies in one way or another.
"Being an entrepreneur is challenging, and successful entrepreneurs typically possess grit, determination, resilience, and the capacity to meet key performance indicators."
What advice would you offer brand-new professionals in the emerging sector?
I believe that confidence is a very important quality a new entrepreneur needs to possess. Every investor or potential investor is not going to be interested in what every entrepreneur is doing. Just keep your confidence intact and don’t get discouraged when the smallest thing doesn’t go as planned.
They need to support investors who are motivated to assist them. We concentrate on the portfolio companies that seek our counsel, direction, and support. To help them, we make use of our networks, including those of our Managing Partners and LP base. We have an open-door policy with all of our portfolio companies. Therefore, I believe that any entrepreneur should aim to find an investor that will not only provide the funds but also bring added value to the table for them.
