Investors need to Think Innovatively about Tech


Technology is a field where investors invest without even thinking much. But their focus is too narrow when it comes to technology, sticking to the usual Amazon, Facebook, and Google stocks. And when it comes to innovation, they just believe it is a huge gamble. Investors want a sure thing and the traditional tech stocks provide them that. For example, Facebook’s stock continues to trade around records even amid the recent data scandal and new recent revelations of misuse of user data. Nowadays technology stocks have just become a defensive option for many.

However, technology is generally associated with innovation, from cutting-edge hardware to the latest software, all is achieved because of innovation. But technology is volatile, the floppy disk was once an innovation but it became obsolete with the advent of CD and DVD’s and the company making floppies had to either adapt or get destroyed causing huge losses to investors. Amazon effect, which is the ongoing disruption and evolution of the retail market from increased e-commerce, is also an example of change and volatility.

investors to think about tech innovatively

However, this trend needs to change and investors need to think innovatively about technology because if they do not, the technology sector will be on the mercy of bigger firms. It has been observed that innovation-driven technology start-ups fail to get VC funding. Investors usually like to fund copy-paste start-ups. The major reason behind this is that investors are just looking for traction and these start-ups are not able to get it due to the lack of seed funds as they can’t manufacture their product and get them in the market. Another repercussion of this lack of recognizing innovation among investors is that these innovation-driven technology start-ups are wanting to move their businesses to countries that support them thereby leaving a possible dent in the economy of their home country. It has been proven many times that innovation leads to money but it obviously demands some gamble from the side of these investors.

innovative incubation tech startups

There are some countries which are putting efforts, doing as much as they can, to provide start-ups with a perfect environment for growth resulting in the growth of the economy as well as innovative technology. Countries are trying to create Silicon Valley like atmosphere in its major cities and the benefits are huge. Entrepreneurs have a lot of ideas on their doorsteps, the ideas that they can commercialize with the help of other bigger companies. This partnership between start-ups and big established companies can help bring innovation to customers faster and in an effective manner.

Investments always have risk factors involved, one can say that such investment schemes are nothing but a highly fashionable and organized betting sites opportunity, but frankly, they are more than that. These investments are a way of revolutionizing the world with technology. They give power to entrepreneurs, power to think and execute and thereby commercializing their idea and revolutionizing the world. So what do you think, will investors think innovatively about tech in the coming years, or will they adapt their no-gamble strategy for the technology sector? Give us your answers in the comment section below.

Leave a Reply

Your email address will not be published. Required fields are marked *