Winter is coming?
This pearltree presents several ressources to answer a quite open question: will the financial meltdown have any impact on the tech & startup ecosystem? Aug 26
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There has been over the past 18 months a Cambrian explosion of startup life, many incubated by angels and seed funds. And now the process of natural selection is beginning again. I got back from the Valley Thursday and what I gathered from the people there is the same as what I’ve heard here: that many seed companies are having a hard time raising money. Yes, second rounds are always hard , after you’ve built the product but before it has made much money.
OK, hands up, who's truly surprised by the drop in the stock markets or the postponed tech IPO's or even the upcoming slowdown in venture financing? No really, who is surprised? If you said yes, stick your head back in the sand. It's all warm and cuddly there and if that's your thing, enjoy. For the rest of you, let's get back to business.
It doesn't matter if you call it a boom or a bubble. The startup business moves in cycles, and what goes up will eventually come down. We're in summer.
October 2008 The economic situation is apparently so grim that some experts fear we may be in for a stretch as bad as the mid seventies. When Microsoft and Apple were founded. As those examples suggest, a recession may not be such a bad time to start a startup. I'm not claiming it's a particularly good time either.
[This blog post was originally published on All Things Digital on March 17, 2010.] Much has been written and said about the current economic downturn and the resulting lessons on how to run high-technology companies. Quite famously, Sequoia Capital, the premier venture capital firm in Silicon Valley, held a mandatory all-CEO meeting in fall 2008 during which it advised them to “Cut spending.
Double Dipping What happened in yesterday’s market underlines the deep bind we now find ourselves in. We have politically precluded new revenues and have shifted our attention to deficit reduction at a time when we would need to invest. We have already had two rounds of quantitative easing and interest rates are at record lows so there is precious little that the Fed can do. At this point a double dip recession is extremely likely with the potential of the second dip being nastier than the first one.