Why Start a Startup?

In the early 1990s, the state allowed us to start businesses. However, after many years of socialism, during which entrepreneurship was not possible, people were not eager to jump into business.

Later, the entrepreneurial focus of young people shifted to various areas, and suddenly, the word “startup” appeared. A magical word that seems almost enchanting in the community of young people and is “sexy” for everyone who is part of it.

A startup is seen as a project that offers something new, built from scratch (“on a greenfield”), where—thanks to courage and low financial requirements—the first “pitch” of the idea is prepared, and initial capital is sought from friends and family (known as family & friends capital) to bring these ideas to life. Today, the word “startup” is mainly perceived as synonymous with a tech company that disrupts the old and creates the new. It aims to improve a service in such a way that it becomes accessible to a large number of customers at affordable prices.

In the following years, the greatest shift was the transformation from an analog economy to a digital one. Literally, from paper and stacks of documents to digital processes and cloud storage.

Each decade has its winners and losers. Change is ongoing and cannot be stopped.

We often hear the opinion that such things are not possible in Slovakia or Central Europe. To some extent, this is true. The current conditions are inadequate for creating a strong environment for startups and supporting them. These issues include legal risks, a minimal number of venture investors willing to take risks and support disruptive projects. Nevertheless, startups do emerge, albeit in small numbers. If they succeed at a certain stage of development and growth, they tend to leave the country due to the risks mentioned earlier.

The mentality in the EU is different, but the upcoming generation is bringing change. The reason why so many startups emerged in the US and especially in Silicon Valley is precisely the mindset of the people. Belief in young people and their capabilities drives us forward.

That is exactly why we at Wanderer Capital are working on this and believe in the success of the startup scene in Slovakia and the V4 countries.

The best time to start a project is during high school or university, when most common risks are insignificant because the founders are still under the financial protection of their parents and schools. The more startups are created, the greater the chance of success and market fit. Courage and determination are the key factors for founders.

Author of the article: Vladimír Orth

Tags: startups , wanderer capital , europe , silicon valley , us startups , vladimir orth , EU , pitch , pitch deck , family and friends , fundraising , venture capital, financovanie , investicie , VC , VC fund