Although there are still market-owning opportunities available, they are harder to find and fund. If prospective customers can not tell you what they will cut back on or defer in order to squeeze you into their budget, you are not a must-have. It takes a lot of effort to go from having an idea, or identifying a market need, to replicating a profit-generating business. In fact, it is exactly the effort involved in moving from an idea to generating profits that lowers risk. Successfully executing a vision and making the difficult decisions on a daily basis are the very things investors find even more valuable now.
Investors are much more interested in proven and sustainable business models.
Currently, the public markets are no longer interested in venture-funding companies with neat ideas and few customers. Consequently, although deals are still being done, VCs are generally setting higher hurdles at the onset and demanding profitability within a shorter timeframe. Because the public markets are in turmoil and private equity is more difficult to obtain, there is higher financing risk associated with venture investments. Profitability within a reasonable timeframe is necessary if for no other reason than to ensure survivability during a risky financing climate. Two years ago, the rush to find the Next Big Thing was on.