Originally a Twitter thread in 2022
I think we might actually over-support tech startups in Wales to a problematic degree. We often keep them alive too long with irrelevant support and hype, when they should have pivoted, closed, or tried with something completely different. And here’s why that might be a problem.
Most startups fail. And the main reason for that failure is “no market need”. In other words, most startups are literally building products that nobody, or too few people want.
So, picture the scene – you’ve made the all-too-common mistake of thinking of a product because *you* need it, but you’ve basically done no customer research, or you’ve done it wrong (which is often the bigger problem).
Then those around you tell you it’s a great idea (they’re usually completely wrong). But you get yourself onto a simplistic startup programme that maybe also gives you free desk space. You’re bootstrapping! You get a grant, or a small bit of funding. You start building. Exciting!
You apply for some awards, and get a nomination, or even win. You get some column inches in WalesOnline. You’re flying! You might even be able to do an equity fundraise based on charm, goodwill, connections, and buzz.
BUT you have no traction of note. In itself, that’s not a deep problem. Most startups experience that at some point or other. But the good ones learn & pivot (or close!) quickly instead of spending 5yrs being artificially propped up, with a biz that was never, ever going to work.
Startups here can take YEARS to find out what should be taking MONTHS. And what happens when they inevitably give up after several years? They’re too burned out to take that learning and go again. They get a job, and that experience is lost to the entrepreneurial ecosystem.
Now, at this point I need to make it clear that the things I’ve highlighted above (press, grants, awards, getting onto a programme etc etc) are all healthy parts of any startup ecosystem, and there are some GREAT people doing good work in those areas.
But all too often startups see the buzz & support as a sign of success in themselves. And they’re not. If you’re not paying attention as a founder they can prop you up long after you should have realised that what you’re doing is never going to work.
In the perfect ecosystem the startup would be supported, and given what it needs to succeed. But it would also be given tough love, that comes from a place of deep insight and understanding of how to identify a problem that’s really worth solving.
So, how do we fix this? With RELEVANT tech startup support and experience. With advice from people who have been there, done it, and can help founders make genuine steps towards Product Market Fit. Pretty much everything else is secondary.
It’s not easy to fix in Wales, because we don’t have lots of founders who’ve exited and/or deeply understand this stuff, and who are willing & available to pass on their knowledge. It’s something we tried to fix about 10yrs ago with Cardiff Start, but local appetite was limited. We were invited to Downing Street much more regularly than we were invited to speak with Welsh Government.
Thankfully some things have improved, but it’s still a huge problem. If I see another B2B SaaS startup founder paired up with a government-provided advisor who made their wealth selling second hand cars or carpets, I’m going to lose my shit.
Leave A Comment