What does the $18.5b Snapchat IPO mean to your tech business? Nothing.

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Unicorn Valuations (billion dollar+) are what fill most of the news these days. There are shows spinning out (IE: Silicon Valley on HBO) and if you were not that connected to the tech industry, you would assume that this is the norm. Come up with an idea, create a half-assed prototype, raise money at a 9 figure or billion-dollar valuation and exit, right? Wrong. With this mindset, I would recommend you going to your local liquor store and buy a bunch of lottery tickets, it probably has a similar success rate.

Focus on creating a company that drives value to users and has the potential to make a profit. As simple as this sounds, most of the businesses I am introduced to for investment ignore the part of creating a business that makes money. If you make a real business that operates at a profit, you open yourself to any option you want, and you won’t have to be in a permanent fund raising mode. You can decide if you want to go big one day and exit, or just keep an awesome business and enjoy it. If you create an idea for a business without a real game plan to make money, you have a near non-existent chance of succeeding.

I would have hope this point was more obvious, but you would be surprised!

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