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Irony, strong companies I been part of have ~2 years of banked cash. Even non-profits. These hyper-growth companies are showing their weakness. They only work
by Justsignedup 6y ago
Irony, strong companies I been part of have ~2 years of banked cash. Even non-profits.
These hyper-growth companies are showing their weakness. They only work during hyper economic growth. The fact that Uber and Lyft don't have like 2 years of runway in the bank is a strong indication of exactly how much these companies are gambling like drunken sailors.
This is exactly why we must bail out the people and let the companies that did not heed the warnings die out. Ideally with the owners losing all those mega billions they managed to grab.
- Apocryphon 6y agoNot just the companies themselves, but the VCs that feed into their behavior. Will VC firms ever feel the repercussions for fueling this tech boom's irrational exuberance?
- rvz 6y agoAnd what happens when you chase hyper-growth over profitability when either the markets crash or a global catastrophe happens or perhaps more accurately both events happening? [0] This plea for halp is left as an exercise to the reader. [0] https://techcrunch.com/2020/04/08/deliveroo-graphcore-and-other-big-uk-startups-say-theyre-being-cut-out-of-covid-19-lending-relief/ https://techcrunch.com/2020/04/08/deliveroo-graphcore-and-ot...
- pjc50 6y agoWhat is a "repercussion"? Most of the individuals involved are in a position where the worst that can happen is a slower rate of wealth acumulation. https://www.bloomberg.com/news/articles/2019-11-05/wework-mess-leaves-softbank-s-masayoshi-son-6-billion-poorer https://www.bloomberg.com/news/articles/2019-11-05/wework-me...
- Apocryphon 6y agoSon is an extreme outlier- remember he lost $70 billion during the dot com bust, and SoftBank lost 99% of its market cap, and in the subsequent decade was able to gain it back. I'm talking about the average Silicon Valley VC firm.