On a day to day basis every layman will hear about the word “Funded”.
I am writing this article as a layman who is seeing the activities of funded and non funded companies around everyday.
The illusion being created by the so called Funded companies will surely try to crush the non funded companys’ growth. If a company is totally depending on one revenue stream alone then they will be the most to get affected soon.
Brain drain on onshore is now Brain Theft.
The funded companies are hiring people at a very unrealistic salary. The non funded companies hire normal guys, train them in live projects and make them up and running to handle the load of the projects. The non funded companies will easily target and hire those employees with higher salary and indirectly crush those non funded companies.
The main reason for the predominant funded companies being lavish on salary is they don’t pay from their earnings. They start this lavish salary culture only after they get funded. Until then they are ready to operate out of two bedroom apartment and can operate effectively with limited human power with market realistic salary. They provide the vision and get the fund and spend it. There is a huge difference between the way funded companies and non funded companies operate.
To get acquired
The non funded companies carry their vision and mission for long term whereas funded companies carry they vision and mission for short term on one goal “to get acquired”
So the moral responsibility of any funded company is to make quick money and sell. If they were not able to take off properly they can shut down and wind the show. Their loss is less here.
But this is not possible for non funded companies because their loss is huge here.
The record shows the number of successful took off funded companies are less when compared to successful non funded companies. Even if I start funding, my goal would be first to secure my money rather than profit.
Once I cross the chasm of securing my money then my next goal will be as how much I can make as quick money rather than profit at a long term. This will eventually end up in the concept of bubble burst, where, as a funder, I would also wish to see the bubble burst to happen so that I can close this venture and start my next round of speculation soon.
The non funded companies normally cannot shut their company very soon. They will have to fight up to the last moment with the hope that there will be some light at the end of the tunnel.
This is because of two reasons. First, this is their money and second they cannot put this loss on someone else’s shoulder and run away.
For companies whose revenue is of two streams and if they are non funded they are the best who can withstand any turmoil.
2016 will see lot of closure of funded companies and non funded companies will see lot of brain theft by the funded companies.
Prepare yourself to handle the situation!!!