IDC Reveals How IT Firms and Investors Can Successfully Work with High-Tech Start-Ups

Apr 02, 2001, 01:00 ET from IDC

    FRAMINGHAM, Mass., April 2 /PRNewswire/ -- Beyond funding, high-tech
 entrepreneurs critically need assistance with refining their strategy and
 product development, according to a new IDC study.
     IT firms need to better understand high-tech entrepreneurs' requirements
 and priorities to more adequately tailor their product and service offerings
 to their needs. Moreover, now that speeding time to the IPO market is less of
 a priority, venture capitalists and incubators must work harder to construct
 strong, profitable companies. Better understanding start-ups' most acute needs
 will make this task easier.
     "The most promising start-up companies are building out a core
 technology," said Nicole Weber, senior analyst for IDC. "What they need early
 on is assistance with product development and access to technology labs -
 items that are often beyond the reach of young companies."
     Vendors and investors that can provide such product development
 assistance, as well as leverage their ability to help start-ups fine-tune
 their business plans and identify and assess partners, will have the most
 successful relationships with start-ups, according to IDC.
     IDC also found that conventional wisdom viewing many recent technology
 entrepreneurs as young, inexperienced, and flush with venture capital funding
 is generally not true.
     "The typical entrepreneur is over 42 years old and has started at least
 one other business," Weber explained. "His or her firm has received only about
 $1 million dollars over the first two years in business. Understanding these
 and other entrepreneurial characteristics is essential to working with high-
 tech start-ups."
     All the findings from IDC's survey are presented in Working with High-Tech
 Start-Ups: Demystifying the Entrepreneur (IDC #23934). This report discusses
 the in-depth needs of entrepreneurs during their first years in business and
 analyzes the importance of numerous resources and services, including
 facilities, lawyers, accountants, strategy firms, recruiting firms, human
 resources, Web developers, marketing, and product development. Additionally,
 the report provides details on the characteristics of the typical dot-com and
 high-tech entrepreneur.
     To purchase this report, contact Jim Nagle at 1-800-343-4952, extension
 4549, or at jnagle@idc.com.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies. Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice. More than 700 analysts
 in 43 countries provide global research with local content. IDC's customers
 comprise the world's leading IT suppliers, IT organizations, ebusiness
 companies and the financial community. Additional information can be found at
 www.idc.com.
 
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
 

SOURCE IDC
    FRAMINGHAM, Mass., April 2 /PRNewswire/ -- Beyond funding, high-tech
 entrepreneurs critically need assistance with refining their strategy and
 product development, according to a new IDC study.
     IT firms need to better understand high-tech entrepreneurs' requirements
 and priorities to more adequately tailor their product and service offerings
 to their needs. Moreover, now that speeding time to the IPO market is less of
 a priority, venture capitalists and incubators must work harder to construct
 strong, profitable companies. Better understanding start-ups' most acute needs
 will make this task easier.
     "The most promising start-up companies are building out a core
 technology," said Nicole Weber, senior analyst for IDC. "What they need early
 on is assistance with product development and access to technology labs -
 items that are often beyond the reach of young companies."
     Vendors and investors that can provide such product development
 assistance, as well as leverage their ability to help start-ups fine-tune
 their business plans and identify and assess partners, will have the most
 successful relationships with start-ups, according to IDC.
     IDC also found that conventional wisdom viewing many recent technology
 entrepreneurs as young, inexperienced, and flush with venture capital funding
 is generally not true.
     "The typical entrepreneur is over 42 years old and has started at least
 one other business," Weber explained. "His or her firm has received only about
 $1 million dollars over the first two years in business. Understanding these
 and other entrepreneurial characteristics is essential to working with high-
 tech start-ups."
     All the findings from IDC's survey are presented in Working with High-Tech
 Start-Ups: Demystifying the Entrepreneur (IDC #23934). This report discusses
 the in-depth needs of entrepreneurs during their first years in business and
 analyzes the importance of numerous resources and services, including
 facilities, lawyers, accountants, strategy firms, recruiting firms, human
 resources, Web developers, marketing, and product development. Additionally,
 the report provides details on the characteristics of the typical dot-com and
 high-tech entrepreneur.
     To purchase this report, contact Jim Nagle at 1-800-343-4952, extension
 4549, or at jnagle@idc.com.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies. Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice. More than 700 analysts
 in 43 countries provide global research with local content. IDC's customers
 comprise the world's leading IT suppliers, IT organizations, ebusiness
 companies and the financial community. Additional information can be found at
 www.idc.com.
 
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
 SOURCE  IDC

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