The cloud has had a huge impact on entrepreneurship.
The cloud has made technology accessible to all types of entrepreneurs. As the tools to build a company are now much more user-friendly, entrepreneurs building cloud based tech startups are able to seamlessly host their business offerings online with little training or man power. In turn, establishing an online company is a much more fluid and less-costly process.
Basic criteria when considering an investment; funding history + management team + engineering talent.
Funding history will tell you everything you need to know about a startup. Besides this criterion, Marc analyzes the management team to ensure each member has a specific set of skills to contribute. Finally, Marc looks at the talent and versatility of the engineering team.
Patents are not an immediate deal breaker for investors.
Investors will focus first on ideas with quantifiable revenue traction and are attracted to startups that are making use of standard, open technologies. While patents are still important, there is a trend towards investors becoming less contingent on them.
Education tech is on the rise as a result of the cloud and big data merging.
The marriage of cloud technology and big data are contributing to innovation in education tech. Consequently, Intel Capital is on the hunt for education tech as one of their next funding trends, in addition to augmented reality technology.
Money is just one component of a startup ecosystem.
Marc noted that to foster growth and innovation, regions have to leverage the resources they already have. To illustrate this point, Marc noted a few thriving hubs for entrepreneurs and investors in the United States. First, referencing New York as a haven for VC firms and investors because of the city’s heavy representation of varying industries in addition to Boston as a hotspot for innovation and research because of their prominent post-secondary institutions. Not to overlook Silicon Valley’s abundance of startup success stories, which he deems as a result of the region’s cultural affinity for networking. The close-knit nature of any community must encourage mentors to pass down experiences and advice to emerging talent and founders in their early days.
For more insights, check out our storify.com/LSPARKGlobal/meetmarcyi.
Editor’s note: This blog was originally published in May 2015.