Finance: The Secret Key to Becoming a Tech Company

European Straits #66

Dear all,

My partners and I at The Family are constantly rooting for old incumbents to become more of tech companies. The reason is simple and very much in line with our mission of supporting entrepreneurs: startups cannot succeed in Europe until everyone in the business world is convinced that tech companies will win in the end—in every industry.

Some executives may not be willing to act on that conviction, perhaps thinking that it’s not the right time or conditions to undertake a radical transformation of their company. Others are simply afraid, seeking to buy a bit more time, pocket their yearly bonus, and hand things over to a successor that will deal with the more difficult challenges. Too many executives, however, are simply in denial. They’re aware that something called the digital transition is going on. But for some (flawed) reason they think that their particular company or industry is immune to the transition’s transformative impact.

The Family has long tried to cure that deni…