How the “Bootstrap Culture” of a Place like Austin Changes Entrepreneurship From an “Equity Culture” of a Place Like Silicon Valley

Does Austin even have this more “bootstrap culture” and Silicon Valley disruptive innovation and valuations?

Equity must be worth something.

Can a business be profitable and successful but have equity NOT worth much??

  • Equity in a business that will likely fail, even if funded, isn’t worth anything
  • The equity in a business that can’t capably compete in the market, is likely depressed from what it could be
  • The equity in a business lacking access to resources (experienced people, partners, and more capital) is worth less than the like business that is flush with those resources
  • The equity in businesses where people tend to exit prematurely, or for less than is possibly attainable, is simply worth less than where business strive for more
  • Austin favors Sales. Sales accelerators are prolific. Advisors encourage customer adoption. Rather than bluntly saying, “no,” many investors mis-guidedly encourage struggling entrepreneurs by saying things like, “come back when you have more customers.”
  • Silicon Valley is Marketing focused. Startups, there, focus on market share and competitive advantage. They focus on disruptive innovation and building capable teams that will find success. Capital is a competitive advantage. Funding, not without its costs, is a competitive advantage. You see the impact of this in the litany of ventures there that didn’t have customers for years! Building value in equity, market share, resulting in business of great value… with incredulously little revenue.

Equity must be worth something.

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Paul O'Brien

Paul O'Brien

5.9K Followers

CEO of MediaTech Ventures, CMO to #VC, #Startup Advisor. I get you funded. Father, marketer, author, #Austin. @seobrien & @AccelerateTexas. https://seobrien.com