Last year was fantastic for startup fundraising, continuing an upward trend with a dramatic increase to more than $47 billion (a 62 percent increase from 2013’s figures). On the surface, this is great news — more venture capitalists are pouring more money into startups, thereby increasing the amount of available resources for new ideas.
But the type of companies receiving this funding, and the way this funding is distributed, illustrate a system that prefers certain industries and certain types of ideas over others. Popular consumer apps get all the attention, but the number of these ideas that actually get investments is relatively low. The elite app ideas will always get tremendous financial backing, but other, less-flashy industries with more environmental conditions that favor success are starting to emerge as worthy entrepreneurial ventures.
How Is The Money Distributed?
The trends dictating this increase in total available funding are actually…
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