The technology industry, particularly that in Silicon Valley, is an extremely lucrative business, as it has driven innovations within the past few decades that have fundamentally altered the way the world turns.
Understandably, there is a plethora of investment groups and venture capital firms that have set up shop looking for the next big thing to incorporate in California. However, Fortune magazine contributor David Skok advises inventors and tech entrepreneurs to remain realistic and objective when it comes to seeking out funding.
"It is surprisingly easy to get a high valuation in today's funding environment because of the over supply of investors, and the shortage of supply of really interesting deals," Skok points out.
"My strong advice to entrepreneurs is to make sure that they are not setting unrealistic expectations for how they will execute, as failure to meet those expectations will come back and bite you in the next round," he adds.
The emerging green tech and clean energy sectors - by virtue of being young industries - pose a particular challenge to entrepreneurs. Unlike the computer, internet and social media sectors, for which consumer demand grew in response to innovation, the demand for clean energy exceeds that of the technology, posing a unique challenge to finance acquisition.
Tags : ca, financial management, small business management
Posted: Apr 28th, 2011