Startup Dilemma Continued …
In one of our previous posts (August 28, 2019), we mentioned that some Miami startups struggle to obtain proper venture capital and support from Florida investors. We also gave an example of one founder, who went to Silicon Valley in 2015 to develop his concept, in collaboration with Y Combinator. After Eliam Medina successfully raised capital for his startup Willing in Silicon Valley, he then returned to Miami to build his company.
The startup grew rapidly.
Then on November 20, 2019, MetLife acquired Willing.
Ironically, the buyout occurred because investors in Silicon Valley, not in Miami, decided to support the project. They were the ones who recognized the business potential.
We do not have the on-board [technical] expertise to evaluate the potential of your startup.
Attempting to mirror the forward-thinking West, many investor entities in Florida claim that they fund early stage companies. But, in practice, Florida investors tend to prefer an offering based on ordinary business/sales models, customers, and spreadsheet predictability.
With tech in particular, Insight Inc’s experience with angel investors is typically to the effect that “We do not have the on-board [technical] expertise to evaluate the potential of your startup.”
Hopes for South East Venture Capital
However, our research indicates that some imaginative investor entities are familiar with private placement memorandums. Concurrently, we have met a number of startup founders who figured out how to work directly with principals. And, those businesses partnerships turn out to be more creative.
In other words, some tech startups in Florida are not actually working with angels or VCs, nor are they presenting at capital raising forums.
A number of serial entrepreneurs have told us that the system still has problems. But, they also see evidence that experienced investors are moving to Florida, seeking creative tech projects at this time.
If you are a startup in Miami, share your thoughts on the ‘Miami scene’ in the comments.