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It will be interesting to see what happens to all these VC-backed companies that have been losing money for years and are still not profitable. When the VC mon

by foepys 7y ago

It will be interesting to see what happens to all these VC-backed companies that have been losing money for years and are still not profitable. When the VC money runs out not even government bailouts will help. Helping money-losing companies to lose more money isn't in the interest of a government unless they are essential to the rest of the economy or national security. Maybe the bay area will be hit much harder than other companies.

shartshooter 7y ago
A lot of the herd will be thinned out for sure. Customers of ours are starting to lay folks off. Ultimately, it's a question of how long and deep the downturn is. A couple of months and VC-backed companies already losing money may be ok. A couple of quarters and you'll see a lot go belly-up depending on who they sell to.
- unlinked_dll 7y ago
  This isn't winter kill thinning the herd though, it's more like the mass extinction of American Buffalo during the push to the west. Companies with good fundamentals are laying people off en masse and burning their cash reserves rapidly. It's not just the VC backed companies, or the low marging/highly leveraged mom-and-pop, big box retail, airline, whatever. I'm terrified what's going to happen on May 1 when rent checks and mortgage payments bounce.
  - richajak 7y ago
    We were brainwashed that sharing economy (uber, wework, airbnb) was going to be our savior. We were renting because assets were too high to own, better to do short rent; cheaper and less commitment. Looks like those sharing economy model cannot solve the root cause. The coronavirus acts as a RESET to the whole society. We may see a collapse in housing price, business bankruptcy, and stock market. If we have to think positively, the current situation will only stop when all of these apply -stock price reflects 8-10x true profit, not EBITDA -average housing price in Manhattan will be be 3x working class income. -young people get decent job, not survival gig, not blocked by increasing retiree or union. If this virus was artificially made or by natural evolution, I can say it was meant to reset the society. It will actually prevent WW3.

by foepys 7y ago

shartshooter 7y ago

A lot of the herd will be thinned out for sure. Customers of ours are starting to lay folks off. Ultimately, it's a question of how long and deep the downturn is. A couple of months and VC-backed companies already losing money may be ok. A couple of quarters and you'll see a lot go belly-up depending on who they sell to.

unlinked_dll 7y ago
This isn't winter kill thinning the herd though, it's more like the mass extinction of American Buffalo during the push to the west. Companies with good fundamentals are laying people off en masse and burning their cash reserves rapidly. It's not just the VC backed companies, or the low marging/highly leveraged mom-and-pop, big box retail, airline, whatever. I'm terrified what's going to happen on May 1 when rent checks and mortgage payments bounce.
- richajak 7y ago
  We were brainwashed that sharing economy (uber, wework, airbnb) was going to be our savior. We were renting because assets were too high to own, better to do short rent; cheaper and less commitment. Looks like those sharing economy model cannot solve the root cause. The coronavirus acts as a RESET to the whole society. We may see a collapse in housing price, business bankruptcy, and stock market. If we have to think positively, the current situation will only stop when all of these apply -stock price reflects 8-10x true profit, not EBITDA -average housing price in Manhattan will be be 3x working class income. -young people get decent job, not survival gig, not blocked by increasing retiree or union. If this virus was artificially made or by natural evolution, I can say it was meant to reset the society. It will actually prevent WW3.