We launched our business after the collapse of the Soviet Union with no capital at all. The only computer I contributed to the business was one I built myself, based on a Z80 processor, and I wrote a Graphical User Interface for it.

Through contracting work in Finland, we acquired better hardware. As Estonian food shops were empty, each week, we had a dedicated person take a ferry trip to Helsinki to buy food. During this period, we continued to develop our Graphical User Interface for IBM PC clones, which were gaining market traction. This was before Microsoft Windows dominated the market and when Apple Lisa was too expensive for most people to own.

Within a few years, after several strategic changes to remain competitive in the evolving IT environment, we were listed among the top 10 IT companies in Estonia. As none of the former Soviet citizens had any knowledge of capitalism, I had to learn about assets, balance sheets, and cash flow from scratch.

What I especially valued in that business environment was honesty. You could easily disappear without a trace if you didn't keep your promises. Therefore, we included special clauses in our agreements with emerging banks and telecoms: we paid fines for every day a system was not delivered on time and for every bug found in our system. This is why I was so shocked when I moved to the UK, where delays and bugs are common in IT systems development, and customers even have to pay for these issues. As I became more familiar with the UK business environment, where many businesses operate on scam tactics, I wasn't surprised that IT companies followed that trend.

The Current StartUp Culture

However, the situation is even worse with StartUps. As I have traveled and stayed informed about technology trends, I am disheartened by what’s happening in the sector:

• Real Business Foundations: Business should not start with media hype aimed at raising money. It starts with having a product that has market interest and customers willing to pay for it.

• Product Knowledge: Any manager must deeply understand their product, its development, and how it works. Having a celebrity manager does not enhance business credibility.

• Spending Wisely: After raising millions, business owners often foolishly spend on personal luxuries. Renting private planes, lavish office spaces, or buying villas does not help develop your business. I'm shocked that VCs allow this behaviour! Historically, innovative products have been developed by individuals working from their bedrooms, with servers installed there.

• Efficient Hiring: Hiring a large number of people based on resumes does not expedite getting your product to market. It takes around a year for StartUps to develop their first prototype, while a skilled professional can do it within weeks.

• Financial Responsibility: I do not understand rounds of financing beyond the initial plan. If cash flow projections are not met, the business has failed. The “unicorn” status means spending over a billion dollars of Other People's Money (OPM). Why should anyone be proud of this? They should be held accountable or at least responsible for paying it back.

• Profitability Focus: The primary business objective is to become profitable as soon as possible. Strategies involving free samples and excessive spending on celebrity endorsements do not help achieve this goal. Historically, businesses that followed such tactics have ended up bankrupt.

Conclusion

I am deeply troubled by the current business environment in Western countries. Dishonesty, overpromising, underdelivering, and failing to keep promises to customers have become the norm. Instead of focusing on business development, many so-called businesspersons spend their time seeking media attention, viewing themselves as celebrities. This is why I do not want to be part of this environment.