4 ms·

Too bad I don't have any VC contacts so I was never able to raise a runway to begin with. Instead I've had to work multiple jobs to create my own runway and wo

Too bad I don't have any VC contacts so I was never able to raise a runway to begin with. Instead I've had to work multiple jobs to create my own runway and work on growing revenue. I'm not sure which path is easier right now.

natly 4y ago
Yeah I'm seeing tons of "free money is over" articles lately but it feels like only a small percent of SF residents had that experinece in the first place. I doubt more than a tiny fraction of HN readers will be affected by this new development at all.
- draw_down 4y ago
- manquer 4y ago
  Directly few enough founders on here sure , indirectly everyone is affected. That company with lot of easy money could be your customer or your customer’s customer , or the employer of your customer. You could be a neighborhood coffee shop in the bay, with belt tightening, your customers now will think twice about spending or worse be laid off with no money to spend at all. It could just be the number of people being laid off will depresses salary or getting a job harder if you are looking for a new role, or your company is now finding cheaper replacement to you now in the market easily, making your job lot less safe. It is easy to say that it was all too good to last everyone should have known, Many have staked their careers on the current market of 10 years . Taken loans for expensive college degrees, bought houses on mortgages assuming salary , got married started families and so on . Real lives are going to be damaged by this downturn .
andreilys 4y ago
Even without VC funding you still have debt based funding which is a lot easier to get when interest rates are at all time low.
- candiddevmike 4y ago
  That requires my house or some asset to be put on the line instead of just my reputation, and I would be able to get exponentially less than I could with a VC.
  - jupp0r 4y ago
    You also forget the small detail of having to pay back the money you received.
    - raffraffraff 4y ago
      Haha, I thought you just failed and shrugged and went home. You have to pay it back? I bet there are a lot of failed startups that don't have the money to pay back.
james-redwood 4y ago
Easy access to VC was also geographically restricted. In countries like South Africa, with a small but robust and burgeoning startup scene, at least among the startups that I know of where I know the founders personally, all have resorted to either debt or revenue models of funding. None could either get VC funding due to the nature of their work lying in poverty-related solutions or could simply not generate enough revenue to sustain themselves initially and had to rely on taking on debt. n = 5 so make of that what you will.

natly 4y ago

Yeah I'm seeing tons of "free money is over" articles lately but it feels like only a small percent of SF residents had that experinece in the first place. I doubt more than a tiny fraction of HN readers will be affected by this new development at all.

draw_down 4y ago
manquer 4y ago
Directly few enough founders on here sure , indirectly everyone is affected. That company with lot of easy money could be your customer or your customer’s customer , or the employer of your customer. You could be a neighborhood coffee shop in the bay, with belt tightening, your customers now will think twice about spending or worse be laid off with no money to spend at all. It could just be the number of people being laid off will depresses salary or getting a job harder if you are looking for a new role, or your company is now finding cheaper replacement to you now in the market easily, making your job lot less safe. It is easy to say that it was all too good to last everyone should have known, Many have staked their careers on the current market of 10 years . Taken loans for expensive college degrees, bought houses on mortgages assuming salary , got married started families and so on . Real lives are going to be damaged by this downturn .

andreilys 4y ago

Even without VC funding you still have debt based funding which is a lot easier to get when interest rates are at all time low.

candiddevmike 4y ago
That requires my house or some asset to be put on the line instead of just my reputation, and I would be able to get exponentially less than I could with a VC.
- jupp0r 4y ago
  You also forget the small detail of having to pay back the money you received.
  - raffraffraff 4y ago
    Haha, I thought you just failed and shrugged and went home. You have to pay it back? I bet there are a lot of failed startups that don't have the money to pay back.

james-redwood 4y ago

Easy access to VC was also geographically restricted. In countries like South Africa, with a small but robust and burgeoning startup scene, at least among the startups that I know of where I know the founders personally, all have resorted to either debt or revenue models of funding. None could either get VC funding due to the nature of their work lying in poverty-related solutions or could simply not generate enough revenue to sustain themselves initially and had to rely on taking on debt. n = 5 so make of that what you will.