IDC Reveals How IT Firms and Investors Can Successfully Work with High-Tech Start-Ups
FRAMINGHAM, MA – APRIL 2, 2001 – Beyond funding, high-tech entrepreneurs critically need assistance with refining their strategy and product development, according to a new IDC study.
IT firms need to better understand high-tech entrepreneurs’ requirements and priorities to more adequately tailor their product and service offerings to their needs. Moreover, now that speeding time to the IPO market is less of a priority, venture capitalists and incubators must work harder to construct strong, profitable companies. Better understanding start-ups’ most acute needs will make this task easier.
"The most promising start-up companies are building out a core technology," said Nicole Weber, senior analyst for IDC. "What they need early on is assistance with product development and access to technology labs – items that are often beyond the reach of young companies."
Vendors and investors that can provide such product development assistance, as well as leverage their ability to help start-ups fine-tune their business plans and identify and assess partners, will have the most successful relationships with start-ups, according to IDC.
IDC also found that conventional wisdom viewing many recent technology entrepreneurs as young, inexperienced, and flush with venture capital funding is generally not true.
"The typical entrepreneur is over 42 years old and has started at least one other business," Weber explained. "His or her firm has received only about $1 million dollars over the first two years in business. Understanding these and other entrepreneurial characteristics is essential to working with high-tech start-ups."
All the findings from IDC’s survey are presented in Working with High-Tech Start-Ups: Demystifying the Entrepreneur (IDC #23934). This report discusses the in-depth needs of entrepreneurs during their first years in business and analyzes the importance of numerous resources and services, including facilities, lawyers, accountants, strategy firms, recruiting firms, human resources, Web developers, marketing, and product development. Additionally, the report provides details on the characteristics of the typical dot-com and high-tech entrepreneur.
To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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