Startup culture is booming in Australia, especially within the millennial marketplace. While creative freedom and drive is the backbone of many startups, it’ll likely take financial backing and investment for a business to reach its greatest success
Some big ideas come at a large cost and the stability that a financial backer can supply to a millennial-led startup can provide the inspiration they need to think bigger. While the idea of investing in a small business or startup may seem risky, there are many reasons as to why it can be beneficial for investors.
A basic assumption is regularly made that an entrepreneurial millennial is anyone aged under 35 with a “big idea”. While the cultured and experienced business person may envision what a solid business model should look like, the innovative outlook of most new business models can shock a traditionalist. This right here is why we should be investing in millennial startups.
Shares and investment options are great for established businesses or individuals to jump on board with new business ventures. When businesses take on new ventures they look at the options that are possible with growth and brand awareness. Investing provides a lot of credibility.
Millennial startups within Australia are hitting the ground running with their big ideas, and while we see television programs such as Shark Tank show the talent and products available, it is not often showcased what the investors get from the startup besides the economic share.
Raising capital, profile and credibility are all things that can come from investing in a startup. Not only is there economic potential when investing in an idea or business, but millennials provide the technology and digital perspectives that many other businesses or organisations do not.
Here are five reasons why established businesses should invest in a millennial startup:
- You’re not investing in just a business, you’re investing in a culture
Startup culture is just that – a culture. Add millennial personality to that and you have a whole new scale of ideas and possibilities. The difference with millennial startup culture is the way they are influenced and operate. Millennials have a number of different viewpoints on things and by nature, challenge traditional processes. A young culture knows no bounds and can tear through the business realm at an exponential growth rate. If you’re investing in such culture, you better be prepared for every aspect of business.
- There is an abundance of untapped inspiration
Millennials often have different view on business, culture, art and innovation in comparison to other generations. When an investor becomes a part of a business they are often taking on a mentor position as well as a position of authority. Investors have the ability to harness any ideas and ensure the business or organisation can move ahead with plans thanks to financial backing. Being involved as an investor immerses the individual or business backer in new ideas and can provoke untapped inspiration not only shareholders but the company itself.
- There is economic capital and advantage
Investing in a millennial startup is a great way to expand an investment portfolio. The capital gain and market share in a new business or startup is a great way to increase capital to make an impression in specific industries and sectors. Financial gain is highly possible from startups and is just another one of the advantages of investing in a business or idea. Having market share in a specific audiences and businesses shows growth in economic and social capital.
- Millennials are digital natives
Millennials are digital natives and take work in the digital and tech space with ease. By being involved with a millennial team, investors and mentors are giving themselves a learning opportunity that they may not have previously had when being in a traditional workplace or one where millennials are not business decision makers. Startups invest a lot of resources and man hours in digital presence and social media. The advantage of having a team of millennials in the business and idea you invest in means you are learning the skills and mindset of digital natives. The majority of millennial startups rely heavily on a strong social media presence, and it is second nature to carry out marketing via the platforms. So while you may be a leader by being an investor, you are also setting yourself up for education in the most diverse and important part of business in the 21st century – digitisation.
- Millennial startups have no fear in the face of a challenge
Millennials are known for their big ideas and not much experience, which is why investing in a startup with the generation can seem like risky business. Even when faced with challenges they are willing to take risks (calculated or not) this alone can add value to the product or idea. No task can seem too big and with the reassurance from an investor, millennial startups can dream and often achieve bigger and better results. In the face of adversity millennials come up with solutions that differ to those who operate with a normal business model or non entrepreneurial workplaces. Risk factor often plays a minimal role in decision making for millennials and investors can learn to think in an agile mind frame when working in structures that do so.
About the Author
Jessica Koncz is a millennial entrepreneur, business director and social media expert. She is the founder of Crave New Media, a social media marketing and advertising agency located in Newcastle. Jessica has also created Australia’s first “Tinder for Food” app, Crave and has a following of 47,800 on the Instagram page Crave Newcastle.