AUSTIN, Texas, February 1, 2017: Austin like most, if not all of Texas, is a great business climate for startups and one of the more thriving economic regions in the United States. It leads in setting the stage for business collaboration, maximizing how they prosper and compete, in several fields.
Making a marketplace viable for successful business startup development requires a set of distinguishable offerings like office space, access to capital, mentorship and expert advice.
As more and more businesses enter the region, providing more and more trading partners: thick market externalities subsequently arise, increasing demand for commercial exchanges. More prominent marketplaces see the most successful businesses emerge.
In a nutshell, no one group can succeed alone.
Asking any startup what the biggest obstacle facing the company is and undoubtedly the response boils down to limited resources. Whether it is capital, expertise, or infrastructure there is always a ceiling that a startup is aiming to ultimately breach.
Which leads to success. The key to achieving that success is gaining the right support. Like physically constructing a building, the higher a structure goes, the more pressure is placed on the foundation.
Inevitably, it needs to be made secure from all angles. That’s where a good team comes in.
Building blocks of business
Like scaffolding in construction, having all the right tools is critical to success. Although your idea may be novel, the research groundbreaking or the service innovative, all business models share the same commonality at their core.
Profit is always a matter of accumulating more revenue than expenses and solvency is still the ability to meet liabilities with existing assets.
These financial elements do not change, regardless of the project size or specifications.
Collaboration between venture accelerators and angel investors allows each one to do what each does best. To specialize. The closer these collaborations are, the stronger the initial foundation is. And the higher up the pillar of success the project ultimately reaches.
A collaboration that falls short by just one component, is like a periodic table missing just one element. It is limited in what it can ultimately achieve because all the tools and levers to produce the required outcome are not present. Think of all the molecules you could not make if you had no hydrogen, or carbon for instance.
Incubators provide the space and the physical apparatus to get startups off the ground and running. They harness the space for new growth ideas to take root and thrive.
Usually, they are not profit driven and take the form of government-sponsored programs in conjunction with institutions in the Higher Ed community (e.g. Austin Technology Incubator | ATI | The University of Texas at Austin )
Accelerators do just what the name says. They move startups into a growth development phase making it lucrative to potential investors. They do this by providing the community, not just the space that a business needs, including workshops, intellectual resources and showcases for the finished product.
Accelerators are the first step to a meeting with the Venture Capital community. (e.g Capital Factory )
Venture Capitalists provide the funds to see a proven project through from its initial design stages to final completion and roll out. It supplements the necessary testing and fine-tuning required to create a successful marketable product or service. Specializing in specific industries provides a startup with experts to streamline the business model. The step before an initial public offering. (e.g. True Wealth Ventures)
Angel Investors are essentially the daddy war-bucks you wish you had. High-risk investors providing startup ventures with capital, allowing entrepreneurs to focus on turning a profit. Similar to Venture Capitalists they are also a step toward gearing the company for an initial public offering. (e.g. Southwest Angel Network)
These are the tools every marketplace, like Austin Texas, needs to grow its economy, fuel innovation and sustain a high community living standard because the marketplace facilities exchanges that literally increase consumer demand.
Prime small business markets always attract the best ideas and the most talented individuals. Collaboration is key to profitably implementing those ideas. Allowing obstacles that create time barriers fail at maximizing profit and diminish overall marketplace value for Austin.
All the more reason to limit search time and provide a unified collaboration.