Until today, maybe one unicorn has appeared in Poland - a startup worth at least a billion US dollars. And subsidies in our country were first distributed in 2008. Unfortunately, little has come of it in terms of business, and the money has not so much revitalized startups as the companies that support them. Subsequent hands only reinforced the pathological processes. Are they on public money? There were similar problems in the UK, but a solution was found there and it is worth taking an example.
Startups are small organizations that act quickly, in time trouble, because they are constantly looking for money from investors for development. Venture capital funds are also small and flexible organizations. With bureaucratic structures, the opposite is true: they are large, they work slowly, officials are rewarded for caution, not for risk. This practice of risk aversion often extends to government-backed funds.
What is public support?
But … state billions is not bad. Some US and European funds are also subsidized. State support is a natural, normal mechanism. This helps to support strategic technologies, reduces risks for investors, making it easier for them to make innovative, but difficult to defend decisions in a free market.
State financial support, like a vaccine, increases the stability of the entire market. Thanks to this, the patient, instead of giving up, fights longer.
Thus, a startup has a better chance of making real innovations.
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Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
