To Raise or not to Raise

To Raise or not to Raise

This is a question that every startup asks itself when it is about to take off. There are enterprises out there that have never needed to raise any money and have done just fine for decades and grew into a respectable enterprise. While others, have raised quite a bit and used it wisely to grow tremendously. Yet others have perished due to lack of financial resources when in times of need or remained a small enterprise for decades as their finances never allowed them to grow to their true potential.

The question remains, To raise cash or not to raise.

Let's look at the landscape of tech companies. Some of the biggest enterprises on the tech scene are those that have had some form of cash infusion at some stage during their growth cycle. Twitter, Facebook, and even Google would not have been what they are today without the money pouring in from Venture Capitalists (VC) and investors. Even the old warriors like Intel, Oracle, Sun Microsystems reached their zenith with timely cash infusions during their growth cycles. Even today's smaller steller startups like Simply Hired (jobs), Zazzle (print), Allvoices (media), Scrybe (office), and others would not have grown to the level they have today had it not been for some serious cash infusion at the right time.

It is also a verifiable fact that companies need money to grow regardless of their size and financial condition. It is not possible to regularly generate huge amounts of cash and use that reserve to invest back into the company. Surely, some do that, but it is not sustainable nor is it always wise. The extra finances (raised capital) is always good when the economy is shaky and revenues are hard to grow.

Startups usually survive from month to month or quarter to quarter. One bad quarter in a down economy, and you bite the dust. Even in good times, extra cash is always good. Say, the market is demanding your services/product and you need to scale up fast. If you rely on your cash to grow, then the growth will be slow and painful. And a competitor with deep pockets might take advantage of the situation and surpass you.

It is great to remain independent, and it feels great to be your own boss with no one to report to. However, it is hard to remain that way for a very long time. Market changes, economy tumbles, the revenue streams dry up or even a competitor might go for the kill. Either way, independence does not guarantee a long and prosperous life.

Nor does raising funds. But it does reduce the risk of failure and reduces the impact of over zealous competitor, economic turmoils and market fluctuations. And a company that can reduce its risks can definitely survive, grow and become a force to be reckoned with.

So my conclusion is raise funds but do it wisely.

Inside the Google machine

Here is a video I found online at the TED talks. It was shot 5 years ago this Februrary during the annual TED Conference in California. Here Sergey Brin and Larry Page talk about cool new products and services that are being rolled out by the Google Machine.

http://www.ted.com/index.php/talks/sergey_brin_and_larry_page_on_google.html

Services like Adsense and Orkut among others. At the time of the the video being shot, Orkut had only 100,000 users and almost 60% from USA. It also talks about their concept of letting their employees spend 20% of the time building cool new apps including the just released Google News among others.

The video is just five years old, yet it seems like a life time ago. In these preceding years, Google and its products have changed the way we use internet, transact and communicate with each other. It is amazing how the internet world has grown and changed around us these years and how technology is becoming more intertwined in our lives.

Comprehensive List of Leadership Blogs

I cam across this list recently while surfing the web for some relevant content. Here is a list of 100 blogs on leadership ranging from, youth, gender and religious, development and management of leadership skills. Check it out, you might find something of interest in there. I know I did.

http://www.bestuniversities.com/blog/2009/top-100-leadership-blogs/

Facebook bridging the gap – literally

It is amazing how Facebook is able to bridge the gap between long lost friends. I got a pleasant surprise when Salman rang me up on my phone here in Pakistan from USA. We have not talked, seen or met each other since 1990 when we graduated from our high school (Aitchison College) in Lahore and went our separate ways. I, like many of my class mates, left for USA for higher studies and he, like the rest decided to study at a top medical school in Pakistan. This was before email and internet was prevalent. We remained in touch but too infrequently and eventually lost track. In the preceding years, we switched numerous jobs, cities and countries with me finally ending up in Pakistan and he taking up a job as a medical practitioner in the USA.

Quite recently a classmate of ours (thank you Asim) initiated a Facebook group for the Graduates of 1990 from Aitchison College and that led for us to connect with many long lost friends. Salman was among them. Social Networks are not just a great idea but a wonderful way for us to connect, meet and bridge gaps between long lost friends. It is also a wonderful method for us to spread the word and share ideas, thoughts and visions with common friends.

Facebook has grown to over 100 million users since its launch just a few years back. If it were a country, it would be the 12th biggest country in the world behind Mexico (http://www.infoplease.com/ipa/A0004391.html). Considering its size and its phenomenal growth, it has immense influence over thoughts and lives of people from all over the world. It commands an eco-system within the Internet eco-system; a sub-internet world that that functions on its own.

I have come across teenagers who cannot live without their Facebook. They appear to eat, drink and breath Facebook. There are activists and social causes influencing and connecting disparate people to the same issue. It has friends and alumni connecting in ways previously unimaginable.

The future of social networking is bright and the power that it brings to the world is beyond what could be imaginable. As this technology moves to cell phones, we shall see an explosion of its use and further innovative ways to connect will be explored and created. So stay connected and enjoy the ride as it will only get better.