Good Time to be a Tech Startup

“This is our decision – to live fast and die young.”

“We’re out looking for astronauts, looking for astronaunts”

These are lyrics from songs I like (Fated to Pretend by MGMT and Looking For Astronauts by The National), but they came to mind as I read an article on this week called The Implications of too Much VC Money and too Little Startup Talent by JS Cournoyer.

Cournoyer highlights the market for technology talent and focuses on the supply and demand curve is currently very much in favor of the worker. Evidence of this is Google giving 10% raises across the board. This was to prevent an ever escalating clash with other tech firms. But another tactic is underway as well – buying start ups for the engineers. Companies like Microsoft, Apple, Facebook, and Oracle are flush with cash. They are looking for astronauts.

But here we sit with 9.6% unemployment. And remember we need about 2.5% GDP growth to generate jobs, so to lower the unemployment rate to 8.6% growth would need to be around 5%. Where is the innovation for this to happen?

Investors believe it’s in Startups. Investment is near the levels of 1999, the last gold rush. It’s a smart play really, invest in a potential target of a company like HP – a company with lots of cash – and work them to transfer some of that wealth in the form of a purchase. Knowing what companies fit the portfolio is important. This is our decision, to live fast and die young.

Although web development is always big, I think the next group of experts is in data. The growth of data is estimated to be increasing at a compounding rate of 60%. We won’t be hearing statements like “I need more data.” We’ll hear “Can I trust the data?” When a resource over a 5 year term is 10x more abundant you know money is to be made.

This is our decision
To live fast and die young
We’ve got the vision
Now lets have some fun

Yeah, it’s overwhelming
But what else can we do?
Get jobs in offices
And wake up for the morning commute?

About benleeson
My name is Ben Leeson. I currently work for a large financial company in IT. I went to school at Marist College in Poughkeepsie, NY. I graduated with a B.S. in Business Administration concentrating in HR. Professor William Brown taught me and I enjoyed his classes; even acquiring an appreciation for just about all things HR. I didn’t pursue a job in that field after college but I’ve kept up with it. This blog will further my fascination with all things HR. I hope to grow my knowledge of the area through thoughtful writings and spirited feedback. I will attempt to have a fairly routine style so anyone reading can come to expect certain segments. Please excuse my incorrect grammar and occasional misspelling.

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