The term “pivot” has been a buzz word in the startup space for many years, with the perception ranging from mild to extraordinary. There a reasons why a startup may choose to pivot and as an investor, it should be expected within the portfolio. But what are the benefits of a pivot? And why is it necessary for a Startup to pivot? In this article we will explore some of the reasons and benefits of a Startup pivot:
Now, if picking a unicorn startup was easy, then everyone would do it! :-)
But there are certain criteria and characteristics that you can look for within a Startup, which can assist you in picking a good startup, that may (one day?!) turn into the elusive unicorn.
A potential Unicorn from an investors perspective:
Investing by following a lead investor, with a track record for successfully investing in Startups, is a great way to learn about the asset class and achieve a return.
In a recent article published by me in the AFR - Why you shouldn’t be an angel investor in startups, Australian early stage angel investors often treat startup investing like horse racing. They punt with money they are willing to lose and approach the investment with a lack of discipline which leads to very poor returns.
Many startups today look to accelerator programmes to give their business the “jump start” they need to get ahead.
Starting a business is really hard!
So an accelerator programme can open doors, connect the founders with people people that can help, provide opportunities for growth and enable founders to test the market/product offering in a supported environment.
Australian early stage angel investors often treat start-up investing like horse racing. They punt with money they're willing to lose, but this approach has led to a lack of discipline and very poor returns.