As I’ve written in the past, there is a lot of growth in the startup scene in Portugal today. It’s an incredible amount of growth in a short time. Rapid startup growth is happening all around the globe and the number of startup incubators and accelerator programs in Europe alone is HUGE. It’s all good news.
As somebody who works closely with startups, I see a lot from the ‘edge’. I meet, speak with, teach, mentor, coach and work with a lot of different startups. Nearly all of them are looking for money, which is not surprising to anyone. Really, I can count on one hand the number of times a startup said, ‘we’re not taking money now’. Good for them!
The flip side is that many of the startups looking for money go through such a painstaking process that the challenge of raising funds seems larger than the effort to get their product to market. Yes, this is the reality of leading the charge while bootstrapping and looking for cash to grow.
In the recent months, we have seen some back to back investment news that is a sure sign that the startup scene is growing up in Portugal. Yes, Farfetch, JOBBOX.io, Bica Sudios, MyGon, B-Guest and others have announced investments. All this is great news but for many, they are stuck in what seems to be an abnormally long process of getting a yes or no from investors. Not all, but many.
I am a big fan of Brad Feld, a managing director at Foundry Group in Boulder, Colorado. He invests in software and internet companies around the US. He recently wrote an article on “Why We Pass Quickly on Things‘ , and I highly recommend reading his blog on an on-going basis.
To quote the article, ‘As part of our strategy, we have purposely constrained our fund size ($225m per fund, which lasts about three years and covers about 30 investments) and our partnership size (four partners, no associates.) As a result, our goal is to say no in 60 seconds‘.
OK, 60 seconds is fast, but in the life of a startup, this is like days and a long process of application submissions, revisions, meetings, more meetings, lots of indecision and more really takes away from a startup focusing on their product and/or business development.
So the article is a good read and when we start seeing investment decisions getting to a yes or no even faster, we will know how much more the Portuguese Startup ecosystem has grown up.
Feel free to share your story of getting funding, regardless of where the money came from for your company. Roughly how long did it take and what did you learn?
Have a great day and thanks for sharing this post,