Tech’s Risky Bet: Is Innovation Worth the Cost?

A staggering 73% of new tech ventures fail within the first two years, yet tech entrepreneurship remains the single most powerful engine for economic growth and societal advancement. Why? Because the few that succeed reshape our world. Is fostering this spirit of innovation worth the risk and resources?

The Dwindling Investment in Basic Research

There’s a worrying trend that often gets overlooked: the decline in public investment in basic research. A report by the American Academy of Arts & Sciences [found that](https://www.amacad.org/our-work/meeting-global-challenges/public-research) the U.S. now invests only about 0.7% of its GDP in basic research. Back in 1976, that number was closer to 1.2%. That might seem like a small difference, but it represents billions of dollars diverted away from the kind of long-term, high-risk projects that fuel true innovation. This is the kind of research that doesn’t have an immediate payoff but lays the groundwork for future breakthroughs. Think of the research that led to the internet, or mRNA vaccines – these weren’t overnight successes.

What does this mean for tech entrepreneurship? It means that startups are increasingly reliant on adapting and commercializing existing technologies, rather than creating entirely new ones. This can lead to a faster pace of incremental innovation, but it also risks stifling the kind of disruptive breakthroughs that can truly change the world. We need more government support for basic research. Period. The private sector alone can’t shoulder this burden. It’s simply not in their short-term interest.

The Looming Automation Challenge

Here’s a number that should give everyone pause: 85 million jobs. That’s the projected number of jobs that could be displaced by AI-powered automation by 2030, according to the World Economic Forum’s Future of Jobs Report. While some argue that automation will create new jobs, the reality is that these new jobs often require different skills and levels of education, leaving many workers behind. We saw a version of this play out in Atlanta’s manufacturing sector in the late 2010s, with companies automating tasks previously done by line workers near the Fulton County courthouse. The retraining programs offered by the state were helpful, but many workers struggled to adapt.

Tech entrepreneurship offers a powerful solution to this problem. By creating new businesses and industries, entrepreneurs can generate new employment opportunities and drive economic growth. But here’s what nobody tells you: it’s not enough to just create any jobs. We need to focus on creating jobs that are high-paying, sustainable, and provide opportunities for advancement. That means investing in education and training programs that equip workers with the skills they need to succeed in the digital economy. I had a client last year, a small startup in the Perimeter Center area, that was developing AI-powered tools for the construction industry. They made it a point to partner with local community colleges to offer training programs for construction workers, helping them to learn how to use these new tools and stay relevant in their field. That’s the kind of proactive approach we need to see more of.

The Gender Funding Gap

The numbers don’t lie: women are still drastically underrepresented in the world of tech entrepreneurship. A 2025 report by PitchBook [revealed that](https://pitchbook.com/news/reports/2025-us-vc-female-founders-report) venture capital funding for female founders reached a paltry 2.3%. That’s 2.3% of all venture capital funding. In 2026. This is despite numerous studies showing that companies with female founders perform better than those with all-male teams. It’s a systemic issue, plain and simple. We see it in the implicit biases of investors, the lack of female role models, and the challenges women face in balancing work and family responsibilities.

What can be done? Well, for starters, venture capital firms need to make a conscious effort to diversify their investment teams and their portfolios. There are also a number of organizations, like the Women’s Entrepreneurship Initiative (WEI) here in Atlanta, that are working to provide female founders with the resources and support they need to succeed. But ultimately, it comes down to changing the culture of the tech industry to be more inclusive and equitable. It’s not just about “doing the right thing,” it’s about unlocking the full potential of our economy. Think about the missed opportunities, the brilliant ideas that never see the light of day because of this persistent bias. It’s infuriating.

It’s easy to fall into the trap of hype vs. reality, especially when discussing the gender funding gap and other systemic issues.

The Georgia Advantage: Incentivizing Innovation

Georgia is quietly becoming a hub for tech innovation, and the state government deserves some credit for that. One of the key factors driving this growth is the state’s generous research and development tax credit. According to the Georgia Department of Revenue, companies can claim a 15% tax credit for qualified research expenses, up to a certain limit. This credit, outlined in O.C.G.A. Section 48-7-40.26, can be a significant boost for early-stage tech startups, allowing them to invest more in research and development and accelerate their growth. We ran into this exact issue at my previous firm. A client was debating between locating their new AI research lab in Austin or Atlanta. The Georgia tax credit tipped the scales.

Beyond the tax credit, Georgia also benefits from a strong ecosystem of universities, research institutions, and incubators. Georgia Tech, Emory University, and the University of Georgia all have strong programs in STEM fields, producing a pipeline of talented graduates who are eager to start their own companies. The Advanced Technology Development Center (ATDC) at Georgia Tech is one of the oldest and most successful technology incubators in the country, providing startups with mentorship, resources, and access to funding. The intersection of North Avenue and Techwood Drive is practically synonymous with innovation these days. This confluence of factors makes Georgia an attractive location for tech entrepreneurs.

Challenging the Conventional Wisdom: The Myth of the Lone Genius

There’s a persistent myth in the tech world: the myth of the lone genius. The image of the brilliant inventor working in isolation, single-handedly creating the next big thing. While there are certainly examples of individuals who have made significant contributions to technology, the reality is that most successful tech ventures are the result of collaboration and teamwork. No one person can be an expert in everything. You need a team with diverse skills and perspectives to build a successful company. So, what skills are most important? Forget the hype around specific programming languages. Focus on cross-functional skills: a basic understanding of software development, data analysis, and digital marketing is far more valuable than being a coding wizard in a language that will be obsolete in five years.

I disagree with the conventional wisdom that coding is the only path to tech entrepreneurship. It’s important, sure, but not sufficient. A strong understanding of business, marketing, and customer needs is just as crucial. We’ve seen countless examples of technically brilliant products that failed because they didn’t solve a real problem or because they weren’t effectively marketed. The best tech entrepreneurs are those who can bridge the gap between technology and business, who can understand both the technical and the commercial aspects of their ventures. They assemble teams that complement their own weaknesses. They are strong communicators.

Many founders overlook the importance of avoiding key business strategy blunders, which can be detrimental to long-term success.

Before seeking funding, founders in Atlanta Tech should get 3 LOIs.

Tech entrepreneurship isn’t just about building the next unicorn; it’s about building a better future. The most impactful thing you can do today is to identify one skill gap in your current skillset and dedicate an hour to learning something new. Whether it’s a free online course on data analytics or attending a local workshop on digital marketing, every step counts.