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Coronavirus is just accelerating the market correction in startups that was already underway. In the end it may actually do some good to just pull the bandaid o

Coronavirus is just accelerating the market correction in startups that was already underway. In the end it may actually do some good to just pull the bandaid off fast. This is just the next wave in the cycle and those of us that have been around a few years know what to expect. Those that haven’t been though this before or are in denial will learn the hard way. Nobody cares about your pumped up valuation anymore. If anything pumped up valuations only hurt you in times like these. Options become worthless and early investors don’t want to take a hit at the benefit of others that come in on a severe (down 50+%) down round. What people do care about is how much cash you have and what your burn rate is. Cash is king. Getting new cash will mean making it with old fashioned revenue and profit. If you can’t do that your days are likely numbered.

charwalker 6y ago
Right now is an excellent time for fully online services to make their mark like a few products I've seen promoted on this forum (specifically the IPTV centralization site in the last month or two). I think once we get through the pandemic and begin returning to normal life we may, at least short term, see companies drop the whole develop product, get VC buy in and cash to burn, then explode staff count and product depth without the user base or revenue streams to maintain them. Companies will be more conservative short term and consider their liquidity and ability to reshuffle and adapt vs a titan of their segment buying up all the smart engineers. Some may still go for that (true unicorns, perhaps?). Maybe I'm being optimistic.