
This Fricket blog usually focuses on interesting subjects (at least we think so) about the world of live entertainment. However, today we want take a step back and talk about life as a start-up business. As you probably know, Fricket
http://fricket.com/ is a Chicago based start-up company. Our web-based app helps everyone shop for tickets to sports, concerts and theater events. We operate in the secondary, or "resale," ticket market and have been called the "Kayak" of event tickets because we aggregate the best ticketing sites into one location. We save you time and money, and that's important because tickets are expensive. There's no need to pay more than you have to, and, if you want to sit in the front row, you should have a way to get those seats too, and not just settle for what's leftover at the box office.
There are a lot of risks to starting this business; we're working full-time on this and bootstrapping, the ticket market is mature and competition is fierce, co-founders have left and new team members have come on board and it's been a continuing struggle to get the v1.1 of Fricket.com developed, to name just a few, but we think it's a great idea, the market opportunity is huge and it's worth the risks. As the title of this blog suggests, we're Fricket all in.
The reason we're describing all this is because of what we see as an increasing change of attitude towards start-up companies and risk taking, in general. While start-up founders know the odds are stacked against them, and failure is likely, this is often glossed over by many who want to focus on the "big winners", or dressing like Mark Zuckerberg everyday, or the great food in the company's cafeteria, or all the stock options. Recently, however, we've seen more written about, and more start-up people we know, returning to the "normal, 9-5" job. Some will still work on their ideas part-time and some will not. Maybe our sample size is too small, but even the "main-stream media" is catching wind of it. On the front page of Monday's WSJ, "Risk-Averse Culture Infects U.S. Workers, Entrepreneurs."
http://online.wsj.com/article/SB10001424127887324031404578481162903760052.html?mod=ITP_pageone_0#articleTabs%3Darticle You definitely hear and read more stories about "zombie" companies who just won't die, and previously active seed-stage to Series A type of investors/VC's who haven't made an investment in years.
What's also interesting too, is the amount of praise we still heap on the risk-takers. You can't go too far today without hearing about how the very successful founder of an electric car company, is "All-In" on his car venture
http://www.thestreet.com/story/11925781/1/elon-musk-going-all-in-on-tesla.html (BTW he also wants to eventually send us all to Mars too.) He's seems to be perceived as someone who "can do almost anything." He made a good chunk of change on his previous ventures, but he still continues to risk it on bigger and bigger ideas. He's seen as a "hero" by most, and even as a role-mode for a popular fictional super-hero character in several big-budget movies
Have U.S. workers really lost their risk taking "mojo" ? We think one of the big reasons outside capital invests, and talented workers flow into, the U.S. is because we've made it a habit over the years of generating a ROI greater, and safer, than anywhere else. We're risk takers by nature and it would take a lot (time, especially) for that to change. We've studied and seen a lot economic cycles over the years, and that's what this feels like. We think we're still taking risks, it's just that those risks might be a bit different.
Statistics seem to say we're staying in our jobs longer, not moving around geographically as much, not starting as many new businesses, which is because more workers are getting older and would rather take the relative safety of a larger, more established company, over a risky start-up i.e. enjoy the 2+ weeks vacation and weekends off. Most people have, and will, continue to work for somebody else. Not everyone can, or should, be a leader and the founder of a company. On the other hand, everyone understands no job is completely safe today either, and that their position could be eliminated overnight. I'm sure it was just a coincidence, but Zynga also announced today it was cutting 18% of its workforce. Perhaps, this is a different type of risk workers now build into their decisions? Are there more risks today from having little or no job security?...from more government regulation?...from your bonus being eliminated because another department had a "bad" year?...from your 401k being wiped-out in another market "correction" ?...from all us planning like we're going to be working till we're 80+?...from all of us being able to pay for healthcare, not only for ourselves but maybe also our parents and kids?..from our state government possibly going bankrupt? There's only so much risk we can take!
Take away or mitigate some of these risks, and we think we'll see another wave of entrepreneurial risk taking and the financing to back it. Until then, the start-up numbers might be discouraging, but many, like us, will still take the "start-up plunge" anyway. Don't call us risk averse because we are ALL Fricket all in there!