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Two forces of change at work in the world of startups
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In and amongst the biggest economic downturn since the 1930's, a couple of positive forces - one people and one money - are adding strength to the world of startups.
As shared on Forbes.com, a growing strategy for people who are 55 and older and dealing with the economic downturn is self employment. With unemployment for this age group up to 7.7% for men and 6.4% for women (it was less than half of that for both in late 2007), it turns out that these individuals have the highest rate of new-business creation over the last decade says, Dane Stangler, senior analyst at the Kauffman Foundation.
And Business Week reports that Marc Andreessen, co-founder of Internet pioneer Netscape Communications, and business partner Ben Horowitz have just raised $300 million to launch a new investment fund. Not surprisingly, the fund will concentrate on making investments in technology/ Internet businesses. But the twist is that they will adopt a "super angel" strategy where they’d invest in 70 or 80 startups in a hands-off way and then double or triple down on the dozen or so winners that emerge. They believe this will allow them to broaden their footprint in more firms (and more winning firms.)
Because startups are an engine of growth in any economic climate, producing net-gains in employment when far larger firms produce net losses, the transition of older individuals and money into this space is a positive sign for eveyone. With age comes experience, and with capital comes opportunity. Put the two together and you have a winning combination.
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