The number of US startup financing deals of $100 million or more has increased by over 800% since 2016, according to reports from the Wall Street Journal. Miami-based investor, Keith Rabois, says on Twitter, “There are no VC funds with pricing discipline. All of us have caved.”
Today, non-traditional venture investors are entering the market, according to the Journal. (Think hedge funds, pensions and other institutions. Fidelity is now a huge investor in entrepreneurship – new territory for the typically-traditional investment firm. These new entrants represent 42% of deal flow, according to PitchBook Data Inc.)
This influx of new money is creating massive opportunities for tech founders (and other entrepreneurs) to seize on new opportunities. Investment in US startups for the first half of 2021 was $150 billion – on pace to double the overall number from 2020 (which was also a record year). While reports focus on Silicon Valley, there’s no denying that fresh cash is looking for an idea to fund.
Could you be the next entrepreneur to benefit from this surge in investment?
According to CB Insights, global funding for new ventures and tech startups is exploding – up over 157% versus last year. As of July 2021, there are more than 700 “Unicorn” companies around the world. A unicorn startup is a privately-held company with a valuation of over $1 billion. Popular unicorns include Stripe, SpaceX and Canva. Small business resource, Merchant Maverick, lists 20 of the top pitch competitions where ideas can find the funding they deserve – and entrepreneurs can get started in accessing new capital investment. Another great resource for pitch competitions is Growth Mentor, offering a list of 18 high-profile places to test your persuasive powers. Having coached the winners of several of the competitions listed, I’ve discovered the easiest way that entrepreneurs can access a seven-figure investment. Here it is:
Learn how to ask for it.
The language of business has never been more important. Understanding how to translate an idea into action, especially action from the investors who can fund your dreams, is where entrepreneurship begins. While the Harvard Business Review cautions that Creativity is Not Enough, I’d argue that it’s a pretty good place to start. Because bringing new ideas to life is the definition of creativity in business, and a great way to look at innovation.
Jim Rohn said, “Ideas can be life-changing. Sometimes all you need to open the door is just one more good idea.” With investors hungry for new ideas, perhaps learning to pitch your business concept is the fastest way to bring it to life. What door could a wise idea, clearly expressed, open for you?
Remember the words of Felix Dennis: “Having a great idea is simply not enough. It is how ideas are implemented that counts in the long run.” Ideas without action are just dreams. But the distance between dreams and reality can get a lot shorter when an enthusiastic investor is involved. Billions of dollars in deal flow are being infused into the market, as non-traditional investors wonder: Who will be the next unicorn? Maybe you will help them to find new ways to answer that question.