The Tech Industry Is In Denial, But The Bubble Is About To Burst. Euphoric reaction to superstar tech businesses is rampant — so much so that the tech industry is in denial about looming threats.
The tech industry is in a bubble, and there are sufficient indicators for those willing to open their eyes. Rearing unicorns, however, is a distracting fascination. The Perfect Storm Raising funding for tech startups has never been so easy. What happened to changing the world? “Change the world” used to be the three most-repeated words in Silicon Valley.
People flocked to the Bay Area to build the next earth-shattering innovation and to “move fast and break things.” That ethos and the ecosystem it spawned is what compelled me to move my company from Wisconsin to San Francisco. A year, a few $10 billion valuations, and one $19 billion acquisition later, “change the world” has become, “What, no in-house barista?” Or as one recent hire from Yahoo asked us, “Where are the snacks?”
We have a $50-per-week snack budget for our entire company. How The Internet Killed Profit. Editor’s note: Tom Goodwin is the founder of Tomorrow Group, a marketing and advertising consultancy for the post-digital age.
Was Y Combinator Worth It? Editor’s note: Jarrett Streebin is a Y Combinator alumnus and founder and CEO of EasyPost, a San Francisco-based startup with a simple shipping API.
Follow him on Twitter @jstreebin. Almost any time someone asks about the Y Combinator experience they ask, “Was it worth it?” It’s a difficult question to answer concisely given the complexity of such a program. During Y Combinator we had a chance to make a lot of friends, learn from experienced entrepreneurs, pitch to investors, and even sign up valuable early adopters.
Snapchat and that old no revenues debate. Like many others in the field I was left scratching my head about Snapchat recently.
Not because of the reported $4 billion offer but because of the explosion of age-old arguments about how scandalous it is for a company with no revenues to be valued that highly. Here's Why Box's Aaron Levie Is A Genius. Handbook For A New Era Of Crowdfunding. Editor’s note: Sandeep Sood is founder of Oakland, Calif.
-based Monsoon+RainFactory, a product house that conceptualizes, designs, develops and markets mobile and web applications. Ever been to Indiegogo? Kickstarter? Spend any cash? Software Is Eating The Job Market. According to the Labor Department, the U.S. economy is in its strongest stretch in corporate hiring since 1997.
Given the rapidly escalating competition for talent, it is important for employers, job seekers, and policy leaders to understand the dynamics behind some of the fastest growing professional roles in the job market. For adults with a bachelor’s degree or above, the unemployment rate stood at just 2.7 percent in May 2015. The national narrative about “skills gaps” often focuses on middle-skill jobs that rely on shorter-term or vocational training – but the more interesting pressure point is arguably at the professional level, which has accounted for much of the wage and hiring growth in the U.S. economy in recent years. Here, the reach and impact of technology into a range of professional occupations and industry sectors is impressive. A Farewell To Jobs. Few subjects elicit more skepticism than the so-called “sharing economy.”
Kevin Roose argues: “The Sharing Economy Isn’t About Trust, It’s About Desperation.” Catherine Rampell warns: “there’s a dark side to these work arrangements … the shifting of risk off corporate balance sheets and onto the shoulders of individual Americans.” US courts are wrestling with whether Uber and Lyft drivers are contractors or should be considered employees. (It’s a hard case: I can see both sides. It seems to me like an issue the Supreme Court ought to ultimately decide.) Major corporations are increasingly using subcontracting structures, like outsourcing jobs, hiring workers through staffing agencies, and franchising … Hundreds of thousands of people work days-long or hours-long “gigs” … PriceWaterhouseCoopers estimated last summer that the sharing economy as a whole, valued at $15 billion in 2013, could reach $335 billion globally by 2025.
SF’s Housing Crisis Explained. The Santa Clara Valley was some of the most valuable agricultural land in the entire world, but it was paved over to create today’s Silicon Valley.
This was simply the result of bad planning and layers of leadership failure — nobody thinks farms literally needed to be destroyed to create the technology industry’s success. Today, the tech industry is apparently on track to destroy one of the world’s most valuable cultural treasures, San Francisco, by pushing out the diverse people who have helped create it. Is Tech Money Good For San Francisco’s Middle Class? An Economist’s Perspective. The liberal wonderland of the San Francisco Bay Area has one of the highest concentrations of wealth in the country.
Twitter’s IPO, alone, created an estimated 1,600 millionaires. Airbnb and Uber Face Some Harsh Realities. Airbnb and Uber are maturing startups both facing some hard realities as they grow. While they have found a loyal and happy user base, they are facing tough resistance from not just the taxi and hotel industries they are disrupting, but also political and social resistance from quarters they probably never imagined when they started their businesses. In Europe and the US we are beginning to see a backlash against the sharing economy idea. For Uber, this means fighting the existing taxi industry and its government backers. Lessons From The Sharing Economy. Editor’s note: Raj Kapoor is the co-founder and CEO of fitmob, previous managing director at Mayfield Fund and former co-founder and CEO of Snapfish. Companies everywhere are jumping on the sharing economy trend. From sharing skills to houses to cars, the sharing economy is transforming many industries.
Technology has lowered the barriers so that anyone can provide services blurring the line between “personal” and “professional.” The consumer peer-to-peer rental market alone is worth $26 billion. Private investors are noticing as Airbnb recently received a $10 billion valuation, and startups like Lyft, Poshmark, fitmob and Uber, which received a $17 billion valuation in its last round, are gaining traction while consumers benefit from lower prices, higher quality, and unprecedented convenience. But this model doesn’t work for every industry. No Pain … Sharing economy models work great when there is a high degree of consumer pain.