It is a start-up time in the world. Whether in the USA or in Poland start-up is the most frequently used word by students, graduates whose dream is to become a start-up founder and entrepreneur or to join a start-up team. No wonder, two-year-old companies are valued in the billions.
Uber, the on-demand car company, which is raising $1.5 billion at terms deem the company worth $ 50 billion, and Slack, the corporate messaging service that is about a year old and valued at $2.8 billion in its latest funding round.
But the tech industry’s venture capitalists, the financiers who bet on companies when the are little more than an idea, are going out of their way to avoid the one word what could describe what is happening around them as a … bubble. “I guess it is scary work because in some sense no one wants it to stop”, said Tom Tunguz, a partner at Redpoint Ventures. In a recent analysis, Tom Tunguz found that investors are paying twice as much for stakes in private technology companies as there were for those that were publically traded.
Robert Shiller, an American economist whose work on stock process earned him the 2013 Nobel Prize and who wrote the bubble book “Irrational Exuberance“, defined speculative bubbles as “a psychological epidemic” in which people put reason aside and instead buy into a story. “It’s complicated social phenomena that gets people into trouble, just like smoking too much or drinking too much”, said Shiller.
No matter how hard people try to avoid them, the social phenomena happen again and again, from Dutch tulip bubble in 1636, to the 1929 stock bubble that resulted in the Great Depression, the tech bubble in 2000 or housing bubble that buckled Wall Street in 2008.
As said the psychological epidemic is not to be stopped. It requires an in-depth know-how and understanding of the capital markets for investors, and people management awareness and skills for to-be-entrepreneurs.
Thanks to the epidemic new ventures are debuting on the market, making it more interesting and challenging, showing new trends.
The prerequisite for a successful organization stays constant, from my point of view, and relates to how the team is built.
Team building can be very advantageous to an organization when done correctly as it increases a team’s efficiency and increases the organization’s productivity, in other words team building refers to a wide range of activities aimed at finding, retaining and making feel successful, goal-oriented and talented individuals who dare to start their business. Team building can be difficult to achieve as life teaches persons to strive for individual excellence rather than working for the good of a team; this is the first thing that team leaders have to overcome for a team to be successful and this is where team building exercises come in.
The info graphic called Team Building Lesson might be of a great support for all who are at an early stage of pitching a new endeavor.
There is a troubling statistic that within 3 years, 92 percent of all start-ups fail. They fail because they don’t have the right team. So, keep trying to launch your own business, bearing in mind the Team Building recommendations.