2 ms·

Meta question: to what extent is the present-day "tech crash" or tech funding crunch scare a reaction against this particular high profile implosion vs. a more

• freyr 11y ago
  We've seen huge investments over the past five years into start-ups, apps, services, etc., that VCs hoped would turn into the next Uber/Facebook/Snapchat/Twitter/whatever. Now we're seeing VCs and the economy separating the wheat from the chaff. Furthermore, we're finding that even the Snapchats and Twitters may not be as great of companies they were hoped to be. Rational thinking is simply replacing irrational exuberance, and I don't think the blame (credit?) can be placed on any one company.
• jacquesm 11y ago
  Not at all. It's just that the investors here did a piss-poor job of looking at the company pre-investment. Lots of herd mentality and external validation going on rather than common sense and some skepticism. The funding crash seems to be mostly based on less than stellar returns for previous funds now at the end of their life-cycles. That makes it a lot harder to get LPs to pitch in. Still, even today there is a glut of money chasing far too little viable start-ups so as far as I can see if you have a solid proposition it should not be hard to find funding. If you are a bs artist then it may get a little harder, and that's a good thing (especially for those entrepreneurs that do have something to offer).