In the U.S., as represented by the PricewaterhouseCoopers Money Tree survey, most of the venture capital goes to the high tech sector. In the U.S., making money is a respectable goal in life. Successful entrepreneurs make money for themselves, and they also share, with key contributors, the wealth that their companies create. As the tax status of stock options is very favorable in the U.S., it also adds to their attractiveness. Flexibility in Human Resources Management Legislation imposing constraints on the weekly number of working hours do not reflect the reality of a high tech start-up.
Competition is everywhere.
To win you need to be best and first. The engineers and software developers employed by start-ups are highly educated people. The development of a new technology takes a business into uncharted territories, implying frequent changes in the direction and the staffing needs of the company. In the process, it may be necessary to lay off people with a background that is no longer appropriate.