Silicon Valley rule: 90% startups fail 90% incubator will fall

Editor's note: Peter Leyland was once a programmer and Internet industry executive, and a successful entrepreneur with Silicon Valley work experience, angel investor, and more than 25 years of technical qualifications. Ryland established a Youweb business incubator in 2007 and spawned a string of successful mobile and gaming companies. Wen/Peter Leyland (founder of Youweb) The current business incubator is an industrial link with independent rights. In 2007, when I started Youweb, I started to explore the business incubator concept with my friends and colleagues. Most people told me that Creative Labs and CMGI tried to build a similar model in the 1990s, but eventually failed (but Overture is the exception, conceived by Creative Laboratories). CMGI crashed in the dotcom bubble. But I noticed a model that was ready to go: Paul Greham's Y Combinator company. At least in Silicon Valley, YC was the only and most high-profile business incubator at the time. There should be hundreds of business incubators today (broadly speaking: business incubators, enterprise acceleration, and "seed start-up funds"), each with a slightly different business incubator than in previous years, such as YC, TechStars, Youweb, Ideallab, and others. The point I want to make is that 90% of business incubators will fail. Yes, it's a failure, and I mean there will be no return (or no profit) in the money invested. Is there any basis for this? Well, the vast majority of business incubators are invested in entrepreneurial ventures that follow the industry's rule of thumb that 90% of startups will fail. Are there other things that make business incubators and startups a bit different? If we look at everyday transactions, popular mobile apps and games, it's clear that only a handful (perhaps four or five companies) are likely to become leaders in the field, and the rest of the business incubator returns, The proceeds from bankruptcy liquidation or transfer to other areas are much less than the initial investment. Here are some reasons: 1, too many companies, "Business Friends Guide" too few if the investment company cannot provide enough funds, the vast majority of business incubators will fail. For those without experience, learning the ins and outs of the rules of the game is very important. A great idea will fail because it has not been carried out well. Take a recent venture as an example, Goko, they have a great idea, and the advance is also very good, but only two days their products have a series of problems. Therefore, it is very important to have a business friendly guide. How to make products, sell products, sell your company's business, leasing, marketing, PR, all of which takes time to learn. Business incubators need to explain to them all aspects of the business, share the business war cases and help them, especially when these startups shakeWhen you want to fall. In addition to giving guidance, most startups will still have the same idea after learning that many startups will want to take the top spot in every "Blank Space", and this puzzling idea can lead to a loss of insight into the real world, There is also a complex problem that companies will need too much money to expand, which can lead to bubbles and crashes. 2, the project does not have a clear path to the fund in the early days of enterprise project start-up, start-up company funds like floods, and then, after this initial stage, I found that many companies are still worried about liquidity. Operators of business incubators are generally good at raising money, which is their job. But when it comes to raising a development fund, there is a moment when you feel the silent crash. In the final analysis, it is either because it is not considered comprehensive, or if the start-up is overvalued or there is too much discord in the start-up phase. Many startups just have a few features, they can't form products, and they can cause business to become isolated. 3, the lack of business development resources business development and tracking records are entrepreneurs to choose the two major factors. When other early teams are assigning business development partners, the famous SV Angel Investment company has created a list of partners for every entrepreneur in Silicon Valley, such as: BD gets you, who your first client is, who your next investor is, and who your future potential assignee is, Even to get you to be able to invest in an IPO. Business incubators that coexist with the best resources and then make IPOs with their help will give entrepreneurs and investors the best chance. The 90% failure rate is still great for North America and the world. North America needs innovative ideas, and people cannot expect the government to pay for tomorrow. With the reduction of funds and donations, public institutions are barely living. Some private institutions, such as MBA programs, are still worried because the projects they are creating are likely to be marginalized by business incubators. Each region and vertical surface is likely to benefit from a new approach to business acceleration. Business incubators have become such a way to achieve this. They give people a chance to make their dreams come true. And even if these ideas fail, they can still influence technology products in other areas through innovation. At present, the cost of business incubators is lower than ever, investors are less risky, they can profit from the network benefits of the incubation of the enterprise, the success of a start-up company will increase the expectations of other entrepreneurs. In the past few decades, the innovation culture in North America has been changing rapidly. Business incubators have begun to be accepted and have a certain weight in universities. Different levels of universities, evergreen vines, private schools, public schools and other schools. We are building a new education system, an ace degree similar to the real world experience. 15 years ago, some universities have gradually accepted and someContact and contact the appropriate project. But why stop in North America? The world needs more business incubators. In fact, cities with less technical culture can benefit from learning and struggling with startups. Whether it is Berlin, Rio de Janeiro, New Delhi, the future of the world's urban development will be influenced by the power of business incubators. We now see a successful Brazilian mobile company, Movile, has started to nurture their future rivals through the 21212-speed enterprise project. If 90% fails, which model succeeds? There may be many business incubators, but the business model is more difficult to form. Most business incubators perform several excellent business models and sometimes do some mixed patterns. There are several examples of business models in business incubators that might be useful to investors: the rather excellent business model that YC performs is the seed fund model (according to Paul Greham). The theory of this business model is based on the combination of "high quality Filters" and "a wide range of product portfolios". High-quality filters ensure the best thinking, team and creative can enter YC. By their speed, the next phase can be reached in three months. On the other hand, a wide range of product mix methods, in statistics, have uncovered some separable companies, such as Airbnb and Dropbox. YC has invested nearly 200 companies this year to give investors a bigger return. It is therefore reasonable to say that a broad portfolio approach is a basic strategy. The second business model is the "founder of high Quality technology" + "firm core" model. I've been betting on the Youweb company for this business model. Youweb does not accept teams, ideas or business plans. We only accept the unmatched hackers, developers and technicians. Entrepreneurs get a year-long project and then want to offer a seed fund three months after the YC company. Entrepreneurs take the time to build a product, launch it, and evaluate the product's scalability. If entrepreneurs think the product is no longer scalable, they will be at the core of a new idea or concept. The entire core process can last up to a year. If the entrepreneur can find that the product can continue to expand, we will try our best to extend the product and sponsor 25,000 dollars. We currently have nine companies but have implemented at least 50 creative products. If they are in other environments, they may be 50 different companies. I find that ending creativity is more effective than ending a company, so we generally don't expand our company blindly. Jason Citron is a good example of trying to conquer three failed ideas, and OpenFeint, the world's largest mobile gaming platform, was gree last year. Let's not forget TechStars, betaworks,obvious, and of course other companies. They may be performing a similar business model, or are defining a new business model, or are consolidating the business in an innovative wayIndustry model. What kind of business model will remain successful for a long time? Time will tell, but I'd be happy to hear your thoughts in the comments.