So, in the dot-com bubble companies were rushing to market with ideas and no products because delivering products was a massive technical undertaking. It seems like we now have companies rushing to market with products -- which are seemingly much easier to build nowadays -- but without profitable business models. I wonder what the next bubble will look like.
It's like clockwork: fed raises rates, cheap money dries up.<p>Seems like all markets for the last 15 years (since 2007-2008) have just been tracking the fed.
I have heard some similar things - lots of belt tightening going on right now. But it may just be a blip... world events are hard to predict, it seems.
From a startup engineer's POV this is a non issue - a 18-24 month tenure is pretty standard.<p>However I can't help but feel the bubble will burst eventually and it will be a success to run a VC-backed startup for a few months without seeing it become a shitshow.<p>I can't complain though, salaries are skyrocketing in my area and getting a major raise is easier than ever. It must be scary for founders / owners though.
Question about investing in companies - given cheap money is hard to find now, from an investor side does it make more sense to try and invest in companies now than it did before, as I assume you'd get more for your money?
None of the recent advice on the topic mention 'having a profitable business model'. Raising money is not the method, it is a method to extend your runway. Designing a sustainable business is another one.
Good. I hope we get out of this by focusing on building businesses that actually make profits instead of, you know, play musical chairs with exit liquidity.
Too bad I don't have any VC contacts so I was never able to raise a runway to begin with. Instead I've had to work multiple jobs to create my own runway and work on growing revenue. I'm not sure which path is easier right now.
The most amusing part will be watching these VC-backed companies realize the tiny bit of revenue they do have is from other VC-backed startups in uncomfortably familiar positions to their own.
<i>Nobody knows how long it will take for the market to be founder-friendly again, but it could be a while.</i><p>Quite a while. Demographics meant an incredible amount of capital flow in the last two decades as the largest generation in American history, the boomers, reached the height of their careers and investments. That party is over. 2022 is the peak of the curve for boomer retirement. As they retire that money is leaving the market. Gen X is small and their capital peak won't be nearly as high. Millennials won't be reaching that level of earning for at <i>least</i> another decade if not longer.