3 ms·

Some of the strongest tech companies were built during a downturn (PayPal if I remember correctly). It's a great time to build, but probably not the best time

• mabbo 4y ago
  That's selection bias at work though. Getting funding isn't a lottery, in which everyone's odds are the same. The funding you receive and the terms of that funding are related to the current market and how good your business/idea is. When times are tough, VCs are still investing, but they're only investing in better ideas, more likely successes. Why take a chance on your long shot when a government bond is a sure thing at a reasonable percentage? We should expect that those companies that got funding during a downtime are better companies based on the fact that they got funding at all.
• trompetenaccoun 4y ago
  It's rather that founders with a proper vision build companies regardless of market swings. During a boom cycle there's abundant founding, even for trash projects. Markets aren't as efficient as many assume, especially not in the short term. Now we're at the end of a boom cycle and everything gets battered but that's just the valuation changing, nothing else. It's speculation. In the public eye quality projects will emerge again a couple of years down the line when they're starting to get really big and no one except those actually interested in the tech will have paid attention to how they were working hard the entire time.
  • scollet 4y ago
    I think we will see even more optimization with constrained budgets. Software is pliable. You will have a network of middlemen running at cost.