251–260 of 443 posts
During the dot com bust - they began building Santana Row, on the site of a very old shopping center called Towne and Country. The developers wanted to revamp the site to take advantage of all the tech money and provide upgraded experiences etc... While they were in the middle of building it - the bust happened. Then, one of the largest buildings that was ~65% complete or so caught fire. It was HUGE - I think it was…
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You know the numbers. 90%+ of startups fail. In an economic downturn, it's more like 99%+. If you're trying to put food on your table, startups are probably the wrong place to turn.
Maybe I don't know the numbers. Maybe I only work for a startup because it allowed me some flexibility I wouldn't have had otherwise. Maybe I didn't know that a global pandemic was going to shut down the economy. Maybe I'm fresh out of college and don't know better. Maybe I lost my last job and had to take this job because the other option was to go bankrupt. Who knows? My point is the same as it was in my gp; your a…
Then you are a fool.
The tech economy crashes on 5-7 year cycles. See: Dot bomb. 2008 Financial Crash. Covid-19 in 2020. I can go backwards in time, too. 3D graphics card startup crash. Microprocessor startup crash. AI winter. etc.
Too much money flows into the sector and then eventually the VC funds want it back. Roughly on 5-7 year timescales. Funny how that aligns with crashes, no?
This time VC's changed tack--they won't put money into anything which produces a product so they can simply keep the shell game going. Presumably that's why this crash is a little late.
If you aren't ready for this kind of cycling, you shouldn't be in a startup.
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The thing that annoys me about "lifestyle business" is that it also suggests this idea of short days, tons of vacation, etc. Which is usually not the case.
Honestly I think it’s a way for those that owe million to VCs to feel like they have one over us businesses that grew at a healthy pace, have money in the bank, and money in the bank goes up not down every month. At least that is how lifestyle business is slung here. No one in my local business association would scoff at businesses growing at a healthy pace and no debt. Also nice if no VC gives me another round, I do…
Startups are in way better shape than traditional small businesses. By our very nature, we need months of runway just to keep running. We're designed to weather this kind of storm because "zero revenue" is the default state. Hearing about Bird cutting 30% of their workforce is awful. But it's nothing compared to the thin-margin Mom & Pop, or medium sized private enterprise that had 1 week of cash on hand and ceased o…
Small-medium hotel owner here, that used to write code for a living. What just happened in my industry, is forcing me to go look for a job. I don't think we are going to open for summer season or even if we do its not gonna make enough to live by. Hundreds or thousands of years ago, a few had all the wealth and then most people were poor. We even had slaves. I can't believe that in 2020 and with all the knowledge we'…
But it's not this way everywhere: there are countries (I'm thinking of Scandinavian) where inequality is perhaps not so bad, and there are countries where governments are making major and genuine efforts to support businesses and people who are at risk of (or who have) lost their jobs due to Covid.
There's bad leadership and bad behaviour in many places, but not everywhere all at the same time.
Startups are in way better shape than traditional small businesses. By our very nature, we need months of runway just to keep running. We're designed to weather this kind of storm because "zero revenue" is the default state. Hearing about Bird cutting 30% of their workforce is awful. But it's nothing compared to the thin-margin Mom & Pop, or medium sized private enterprise that had 1 week of cash on hand and ceased o…
You weren’t around in 2000 or 2008 were you? Your startup is only in “better shape” as long as VCs are willing to keep funding you. VCs are only willing to keep funding you if they have confidence that you will have a profitable exit.
A friend’s medical practice will implode April 30... their business is down 90% and they won’t be able to pay rent or the employees. They are only staying open in hope for some sort of aid or debt jubilee. The partners will lose pretty much everything.
People with cash aren’t going to keep plowing money into startups, they are going to buy depressed assets. Every leveraged real estate company will be broke in 90 days or less.
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Maybe I don't know the numbers. Maybe I only work for a startup because it allowed me some flexibility I wouldn't have had otherwise. Maybe I didn't know that a global pandemic was going to shut down the economy. Maybe I'm fresh out of college and don't know better. Maybe I lost my last job and had to take this job because the other option was to go bankrupt. Who knows? My point is the same as it was in my gp; your a…
> Maybe I didn't know that a global pandemic was going to shut down the economy. Then you are a fool. The tech economy crashes on 5-7 year cycles. See: Dot bomb. 2008 Financial Crash. Covid-19 in 2020. I can go backwards in time, too. 3D graphics card startup crash. Microprocessor startup crash. AI winter. etc. Too much money flows into the sector and then eventually the VC funds want it back. Roughly on 5-7 year tim…
Feeling schadenfreude when a business fails is tantamount to being happy that someone loses their job. That’s fucked up- and I can’t believe anyone would be stoked about this. Seek help.
Startups are in way better shape than traditional small businesses. By our very nature, we need months of runway just to keep running. We're designed to weather this kind of storm because "zero revenue" is the default state. Hearing about Bird cutting 30% of their workforce is awful. But it's nothing compared to the thin-margin Mom & Pop, or medium sized private enterprise that had 1 week of cash on hand and ceased o…
This will likely become a lot more difficult over the next couple months or longer.
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Why is it so offensive to people in this industry that our skills are valued? Sometimes it seems a little crazy to me too, but I'm not, like, excited to need to live with 5 roommates 90 minutes away from work again like you seem to be.
You answered your own question. It's not that people don't think you're valued, it's that the value you are getting commensurate with pay levels is unsustainable in the region. When the tide goes down, the first boats to flounder are the ones on high ground. I hope we can also see an unwinding of the ridiculous cost of living that is part of the rationale behind unsustainable wage growth. These things go hand in hand…
From your mouth to god's ear. The ridiculous cost of living is what made me reconsider the Bay Area (South Bay) after 5 years there.
My wife and I are very financially conservative. We pay cash to own assets - car, house etc. That just wasn't possible out there. And I couldn't imagine shelling out >$1M (not that I have it) in cash to own a mediocre house that would be worth 5 times less almost anywhere else.
Startups are in way better shape than traditional small businesses. By our very nature, we need months of runway just to keep running. We're designed to weather this kind of storm because "zero revenue" is the default state. Hearing about Bird cutting 30% of their workforce is awful. But it's nothing compared to the thin-margin Mom & Pop, or medium sized private enterprise that had 1 week of cash on hand and ceased o…
Our board and investors have made it clear they think it's highly unlikely any meaningful funding will be able to progress until early 2022 at this point. Recently-funded or reasonably conservative startups should be able to do okay with that, but ones without a lot of runway are going to be in a really difficult position.
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Not all startups require VC capital, some of us are just running without venture funding just clients money, some startups are in better shape because are on right market on the right time. You just need to be in the right time.
And you’re probably not looking for a large exit. You are trying that unheard of concept of spending less than you make. What you are doing is running a “lifestyle business”. That’s not a negative despite what the tech bro’s think. I hate the idea of success for a company seems to be “we got another round of funding while losing money”.