I previously wrote about this in May 2018 (Sh*t Just Got Real. Tech Bubble In Meltdown). It’s worth a re-read because it’s doubly true now.
Over the course of the last year, there
What has become abundantly clear is that while having the right technology is an important part of the equation, it’s not enough on its own.
And that’s especially true for on-demand services where reliable, trustworthy people are crucial for success. What many startups are discovering is that finding those people in a
What’s also clear is that many startups have not made one red cent and are nowhere near being profitable. It hasn’t been a priority – and why should it be when no matter how much money you lose, more money gets tossed your way?
Too many consumer-tech companies nearing their public offerings are selling magic shows at a science fair.Derek Thompson, The Atlantic
The startup business model is no longer about bootstrapping. It’s all about creating high-level hype around a disruptive idea. And if a charismatic founder is involved, all the better. It makes raising stupid amounts of VC money easy as pie.
Surprisingly, it’s only been twelve years since this craziness started.
I date it to the iPhone launch in 2007 when apps first became a thing.
Two years later, in 2009,
Gradually, the disappointments started to pile up.
Over the last two years, Silicon Valley and its unicorns started to feel toxic, especially post-election. They have yet to recover.
So here we are in 2019 and it’s fair to say “the bloom is off the rose” and “the chickens are coming home to roost.”