Welcome to this week’s Linkibuzz post. .
For this installment, we have some great stories from all over the startup world. Our first story takes a look at gender inequality in the workplace, specifically addressing the gender gap in the venture capital funding community.
We all know about Bitcoin. Supposedly it’s the currency that is set to take over the world. The only problem is that for many people, it’s still not being used as a viable alternative currency to money. However, this doesn’t mean there won’t be startups trying to make the most of the opportunities present in that industry. Not all are successful though as you’ll see in the second story.
Everyone in Britain is well aware of the looming referendum to vote on whether or not Britain remains in the EU. But what do British tech startups think about the entire thing? That’s what you’ll find out in our third story.
Lastly, a slightly concerning story from Silicon Valley that addresses why the number of startups has been steadily declining in the last three decades. This makes for some interesting reading so make sure you check that post out.
This article from ValueWalk raises issues that we as a society, and especially women, are all too familiar with. Essentially, this post is about gender inequalities in the workplace, but this also tackles a specific area, and that’s VC funding for startups founded by women.
The statistics on this present a bleak picture for female entrepreneurs. According to a recent report that examined 200 Bay Area startups, it was found that only 8% of those startups that received funding were led by women.
These results signal a lack of diversity in Silicon Valley startups and also affect the overall national competitiveness of startups. The gender gap in venture funding is clear and obvious as the report concludes, but as Ethan Mollick mentions, at least there is awareness about it so future changes can be made.
The post does a great job of raising awareness about the issue and providing a range of possible explanations why this occurs.
Everyone has heard of Bitcoin, and that it’s supposedly the new currency that could change the way we accept payments. While it’s a great idea, it’s still not a solid currency and that’s because for most people it’s still considered an asset rather than a currency.
Of course, we were going to see businesses start accepting Bitcoin payments in addition to other payments or perhaps both. However, what we have seen as this post points out is that some companies will even open up in this industry. The company in question is called YellowPay.
YellowPay was the first Bitcoin startup in the Middle East, which specifically served e-commerce companies promoting Bitcoin as a viable alternative to other payments. However, now they have gone belly up.
Investors are no longer interested in the startup and it seems as if the company fell, which resulted in the company’s demise. While this is a big dent for the industry seeing the first company offering Bitcoin go under, it is not inspiring to the rest of the industry.
In fact, while Bitcoin is still here, there is going to be many opportunities for other companies similar to YellowPay that try and make a dent in the industry because it’s going to excite many ambitious entrepreneurs looking to make Bitcoin a legitimate form of currency.
It seems every startup based in the UK is trembling at the thought of a Brexit in the upcoming referendum on whether or not Britain should remain in the EU. There’s no doubt that if the UK leaves the EU, it will affect startups and this opinion has been loud and clear from the startup community.
One of the major industries that feature startups in Britain is the tech industry. But, what exactly do they think about a potential Brexit?
That’s exactly what this post explores. It’s revealed that there are two main areas of concern for British tech startups:
- Attracting talent
- Increased difficulties hiring outside of the UK
No doubt that both of these areas will majorly affect British tech startups. By being in the EU, they have access to a talent pool of workers across Europe. It also makes it much easier to hire those workers, especially if they’re from EU member countries.
While alternatives have been presented, such as that of a points system and looking to an international talent pool, there are many more complexities involved. Overall, it’s fair to say that life is going to become much harder for British tech startups if Britain leaves the EU.
This post points to a worrying trend that has gradually increased over the past three decades – that the number of US startups is falling. We know that Silicon Valley is a global hub for the startup scene and there are currently around 23,000 startups now in Palo Alto. While those numbers seem big, the reality is that it has gradually decreased steadily.
Now the question many people are asking is: What is the cause of this decline?
The fact is that there is no simple answer. No one really seems to have a solid answer to explain this. Some point to economic circumstances and some point to the government.
An interesting point made by the writer is that many young people today are already dressing like entrepreneurs. They’re talking about technology, innovation and other things related to startups without actually being involved in one. The writer also points to a cultural change. Back in the 1960s and 1970s, people were more rebellious and born in a time when dropping out of the establishment seemed like the way to go.
For many startup founders, it wasn’t so much about getting venture funding as it was about expressing a passion. It was out of this that an informal startup culture was born and became mainstream. It’s an interesting explanation for the steady decline in startups and one you should certainly check out.
We hope you have enjoyed this week’s Linkibuzz post and we’re hopeful it has given you some interesting insights into the startup world.
First, we looked at explanations for why female-led startups are not receiving the same amount of venture capital funding as male-led startups. Second, we explored the Bitcoin industry and a startup that failed in that industry. However, this won’t be the end of opportunities in that industry.
Next, we looked at what British tech startups think of the looming referendum on whether or not Britain remains in the EU. Lastly, we explored the reasons why the number of US startups have been declining over the last three decades.
It was a great Linkibuzz, so we hope you enjoyed the stories and will stay tuned for next week’s Linkkbuzz post.