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Now for the bad news: less investment money for startups

Started by Duncan Riley · 9 months ago

I wrote yesterday that using the economy as an excuse for failure doesn’t stack up. In that post I noted that the economic downturn may actually offer new opportunities, such as increased users as people go out less and through to advertising opportunities as companies spend more to mi ... Continue reading »

7 comments

  • Kyle Brady

    9 months ago

    The lack of funding is something I'm counting on, like you mentioned, to drive innovation. We'll see alot of the "fluff" and copycat places die rather quickly, and even more of the Web 2.0 socialist nonsense disappear entirely.

    But I'm also counting on it for personal reasons.

    VCs will be desperate to invest in only truly groundbreaking and innovative solutions, but potentially earlier than usual. Instead of funding 49 Facebook clones, they'll be looking for the next company that will truly stand on it's own, and not be funding dependent.

    And I hope to be one of them, come March.

    *raises glass to the failing economy*

    --Kyle
    reply
  • Gonzalo Arzuaga

    8 months ago

    I believe there are 2 ways for startups to go about is: 1) as Duncan suggests "profit or die" but also 2) cut, cut, cut costs in order to run a slim operation, with the lowest burn rate possible. You can off course do both...
    reply
  • Loan Modification Girl

    5 months ago

    The money coming into venture capital funds has to come from somewhere, and typically that’s been a combination of direct investment, banks and funds. -- Yes, i think it does
    reply
  • Survive Recession

    4 months ago

    i would have to agree. it is too bat that venture capital is drying up. But, maybe it is not truly disappearing. maybe venture capitalists are being a bit more choosy with who they invest their money. Who could blame them in this long recession. I think a good bit of the money is still there, it is just harder to get at. Startups are going to have to prove they are worthy of the investment to get it.
    reply
  • loanmodificationzoom

    2 months ago

    They say that during a recession, cash is king. I guess now is the time that the wheat separates from the chaff, so to speak. As the net evolves though and more and more people subscribe to online networking groups, its going to become easier and easier to amass copious quantities of traffic; this can cut out a significant amount of advertising expenses....
    reply
  • loanmodificationzoom

    2 months ago

    They say that during a recession, cash is king, and while its true there is less and less capital for new companies, once a company gets their feet underneath them, due to more and more people connecting through social networking online, it is very much easier now than it was just a year ago to create a huge buzz regarding the company as well as rapidly establish a following.
    reply
  • Loan Modification help

    1 month ago

    Since internet has become part of everyone's life it is difficult to control information out there. I mean it is easy to spread bad news or reputation about a company which can cause cash flow problems.
    reply

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