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From Unicorns to Zombies: Tech Startups Run Out of Time and Money

45 pointsby KnuthIsGodover 1 year ago

6 comments

mooredsover 1 year ago
The question to me is how many second order effects will there be?<p>How many startups were revenue positive because they sold primarily to startups ( like this: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=38502012">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=38502012</a> )?<p>Are wages going to decrease for software engineers because of an increase in supply?<p>Is California heading back into fiscal deficit when capital gains taxes from software employees decrease?<p>Will pension funds&#x2F;VC LPs have a harder time with their obligations due to more startups failing (doubt it because in my understanding VC is a small portion of overall allocations, but who knows)?<p>Etc.
belterover 1 year ago
When I read stuff like this: &quot;...Hopin, a start-up that raised more than $1.6 billion and was once valued at $7.6 billion, sold its main business for just $15 million...&quot; it becomes clear why other parts of the world can&#x27;t compete with Silicon Valley. No infinite reserves of paper money and monopoly chips...
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maxutilityover 1 year ago
Seems like as good time as any to revisit the advantages of having and challenges of building a cash-flow-positive bootstrapped company (e.g. [0],[1])<p>[0] <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=34740105">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=34740105</a> [1] <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=37657519">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=37657519</a>
belterover 1 year ago
<a href="https:&#x2F;&#x2F;archive.is&#x2F;HNJoo" rel="nofollow noreferrer">https:&#x2F;&#x2F;archive.is&#x2F;HNJoo</a>
mooredsover 1 year ago
Interesting to read some of the comments on some of the posts linked in this article.<p>Startup Decoupling &amp; Reckoning: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=34982309">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=34982309</a><p>Braid is dead, long live Braid: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=37797696">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=37797696</a>
oglopover 1 year ago
Could be. Could be that more credit is created to fuel more growth and ideas as things accelerate with LLMs. I don’t think the east coast people have a clue what’s happening out here on the west coast sometimes. My perception in the PNW is there’s a LOT going on and people with great ideas.<p>There’s just too many good ideas. Flat out. Plus money isn’t real, it’s a construct. Looks at the feds books and how much debt they hold. It’s become meaningless. None of that will ever get paid back. And no one cares. They only care about the potential ideas that can be realized and sold.<p>Or not. Maybe this is the end. But that breaks my model of humans being insatiable for dreaming and building.
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