European startups prepared for the worst

This is a good starter for ten. But, to really work out who will still be around you’d also need to look at the company’s cashburn and their ability to conserve it relative to their funds in the bank; and, the ability of the company to find other opportunities to fund any gap before the financial tap begins to flow again.

There is a silver lining for those that make it through the next eighteen months: you’ll be extremely well placed. You’ll have less competition because several competitors will have gone to the wall and others will simply not have been able to raise funding.

Germany-based Sevenload, announced that they 30 million euro investment from T-Venture which is a part of Deutsche Telekom. And 10 million euro from Burda. – Also 40 million euro.

Mike, the fundings are committed but normally the money isn’t transfered in total. It’s possible that some startups could have problems. Pls check this list from Lehman as investor: http://www.crunchbase.com/financial-organization/lehman-brothers

As we know, there is not endless amounts of cash to fund businesses with no other revenue generation model and some very well funded startups went pop in 2001 when the markets went cold. So why is funding raised being used as a measure of anything?

Let’s see revenue projections or even actual revenue for these guys.

Ian Hendry
CEO, WeCanDo.BIZ
http://www.wecando.biz

Truphone have raised $32M in April 08, they are based in London

Ian Hendry – publishing actual revenue for private companies is tricky – something you ought to know if “wecando.biz” actually knows anything about business.

The rest of you – thanks for the constructive suggestions.

Mike, fair comment. But no one is under any obligation to disclose details of the funding they have received to the press either. So as both are voluntary for private businesses, why do they not report revenues or profit projections, figures that give a better indication of whether they’ll be around in 2 years time…?

This lists are interesting to gossipers, but I question tehri real world value. Tech startups have the same real world commercial pressures as any business. Boo.com would have been topping such a list 8 or 9 years ago and what did that count for?

Ian Hendry
WeCanDo.BIZ
http://www.wecando.biz

By the way Mike, I am questioning them not issuing details on the meaningful stuff, not what you report on. I am absolutely sure that if any of the above shared details of how and how quickly they are going to make money then you’d be right on it and letting us have that information.

The lack of disclosure of this sort by start-ups is a worry.

Ian Hendry
WeCanDo.BIZ
http://www.wecando.biz

What about companies that have:
a: raised angel funding less than £1
b: grown to break-even or profitability
c: companies who have raised money but not declared the actual amount

Surely these companies are also prepared to “weather the storm”?

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Good internet companies should be profitable and sustainable. Some of these newbies remind me of the boo.com days. Business first .com company second.

No investment is a good investment IMO

Disclosure of “how quickly” a startup is going to make money. Anyone got a piece of string?

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