The money feeders
Injecting money is the basis of any economy digital or not. In the digital ecosystem the time acceleration and the necessity to scale quickly requires capitals invested at high speed and in large amounts. Countries enabling this fast pace and fluidity nurture the most dynamic and successful ecosystems. Innovation fueled by the knowledge feeders and the core builders often flow to ecosystems where funding is abundant. This is a reason why the Silicon Valley remains an attractive worldwide hub. Wealthy Business Angels and early seed funds can make decision quickly both to invest and disinvest.
The successes of recent digital multinationals such as Google, Facebook or Amazon have set up the expectations to ramp up at a lightspeed pace. Their market caps reached pinnacles in record time.
Business Angels bring capital into the system at initial stages of the start-ups. They take the highest risks taking bets on a combination of appealing business models, solutions meeting a need and last but certainly not least high energetic complementary founders. The majority of VCs are coming in when the product, business model start proving their value. If they are not seed VCs they will ask for paying customers, minimum revenue stream with a promise to scale. The founders will also determine their investment choice. Traditional banks also set-up their investment funds and the corporate world has also joined the money feeding carrousel.
Acceleration of the digital economy