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Ask HN: Which startups are thriving in the downturn?
We have had nearly 6 months of economic gloom. Theres has been lots of hypothetical talk of who will win in these turbulent economic times.
Does anyone know of actual companies who have had some explosive growth in recent months?
- linseed_213 4y agoWith the drop in VC checks being written and overall interest rates, I'd expect revenue-based financing to have a good year. Pipe, Arc.tech, etc.
- hoofhearted 4y agoI don’t know if you can count them as a startup still, but Vercel seems to be doing all the right things during this downturn. Connecting up GitHub and watching it runs tests, build, and deploy without much configuration was very gratifying for me. I haven’t felt that feeling towards a tech product in years. It was so simple and easy, the same feeling I felt the first time I used Uber. The same feeling as our first Stripe transaction, or when we launched a stack on AWS.
- telesilla 4y agoIs this similar to Netlify? This has changed everything for me when it comes to deploying mini test sites or tools. No more nginx wrangling just to get a script available online.
- hoofhearted 4y agoI believe Netlify is similar.. Next/Nuxt was created by Vercel though as far as I understand.
- colincooke 4y agoLess doing well because of the downturn, more doing well despite of it, but many players in climate tech are doing really really well lately (for example [1]). Longer term, with IRA [2] now law, the industry is poised to continue to grow faster and faster. [1] https://www.canarymedia.com/articles/climatetech-finance/investors-poured-more-than-half-a-billion-into-solar-software-in-the-last-week-alone https://www.canarymedia.com/articles/climatetech-finance/inv... [2] https://www.canarymedia.com/articles/clean-energy/this-is-huge-major-climate-legislation-will-soon-become-law https://www.canarymedia.com/articles/clean-energy/this-is-hu...
- jacob_rezi 4y agoWe have been growing like crazy - https://rezi.ai/ https://rezi.ai/
- lordgrenville 4y agoAh man, that's what every CEO says.
- deleted 4y ago[deleted]
- noodle 4y agoSMB SaaS seems to be doing just fine.
- emmp 4y agoYes the SMB space, and the MSP vendor space (aka "The Channel"), that sell through to SMBs, seem to have not missed a beat.
- hello_newman 4y agoIn this context, do you mean SaaS for small and medium businesses? Or do you mean small and medium (sized) SaaS companies? Or is SMB in this context some other acronym I’m not thinking of?
- noodle 4y ago> SaaS for small and medium businesses This one
- rvz 4y agoFTX exchange seems to be going great and doing fine. Tons of revenue, very low head count and lots of cash at their disposal. So much, that they are offering to take over other failing startups affected by the downturn. That is a sign of a company that will survive in the long term since they are thriving even in these conditions.
- EddySchauHai 4y agoThey have a lot of cash, but SBF theoretically could close shop and cash out if he feels the amount of money he will be able to donate will be down for the longterm. The entire point of FTX, ultimately, is to take money from crypto traders and put it into Effective Altruism charities.
- instakill 4y ago
- smalldick 4y ago> The entire point of FTX, ultimately, is to take money from crypto traders and put it into Effective Altruism charities. The entire point of FTX is to profit from the unregulated crypto markets by front-running his clients with the FTX-Alameda combo and pump (to bring in new cows to milk) and dumping (to crash the markets and buy sinking companies on fire sale) the markets; while waving the altruism flag.
- EddySchauHai 4y agoI am partially involved with the EA community and know he does indeed donate, I don't believe it's just a case of waving an altruism flag but completely genuine efforts.
- colinmhayes 4y agoI mean both can be true. SBF has perhaps been too gung ho with his EA donations, burning enormous piles of cash down some very deep rabbit holes. And he got that money by using his market maker to front run his own exchange.
- mycall 4y agoAnyone getting rich off Federal funds.
- ta988 4y agoThis is downvoted but there is a niche of companies that thrive under federal money from various agencies grants and contracts, and these didn't really go down much. I would disagree with the "getting rich" as they have a mandate to serve whatever mission from the agency that gave them money.
- NickM 4y agoI find the whole "economic gloom" sentiment a bit odd. We're at extremely low unemployment, and GDP took a small dip in Q1/Q2 but is projected to start growing again in the second half of the year. The S&P 500 is down less than 10% from it's all-time high. Inflation was an issue for a while, but a lot of that seemed to be driven more by temporary supply constraints in certain sectors than any actual currency devaluation, and inflation already seems to be dying down anyway. The recent interest rate hikes also didn't seem to have nearly as much impact on the markets as everyone feared they would. What exactly is everyone so scared about that we all seem to think the economy is headed for a major recession?
- AnEro 4y agoKnowing people that make under 60k a year, and how harder their lives got and how hard it is to pay back loans and other obligations they where ulitmately strong armed into taking to improve their position. Not to mention how alot of western nations have a large majority of people are pay check to pay check regardless of their tax bracket. Working class is a good litmus of how the economy is doing vs S&P because speculation can ultimately make it look like everything is fine until it isn't
- dtdimond 4y agoIt's always been hard for people in those income buckets. But if the question is: are we in a massive economic downturn over the past half year, it's really hard for me to look at the data and answer with a yes. One thing I'm looking at is: https://realtimeinequality.org/ https://realtimeinequality.org/ And that's showing that for the first time in over a decade, the bottom half is seeing real wage/wealth gains, even after recent inflation. Am I missing something? Because your sentiment is the more common one.
- kradeelav 4y agoCharts can lie. Whether or not you can buy bacon* or gas is real. *substitute with whatever staple you wish. I used bacon here since it's historically a working class' person's meat.
- baby 4y agoOr better: which companies do you think will survive and continue to go strong as they exit the downturn (however long it is). I’m still long Meta, Airbnb, Uber, Netflix, etc.
- avgDev 4y agoI'm currently interviewing at a battery startup. Considering the current policies it seems like those companies should remain well funded for foreseeable future.
- kube-system 4y agoThe availability of cheap and easy debt is the main thing that has changed in this economy. Startups that don't rely on debt for financing are still doing fine.
- zxexz 4y agoI work in the healthcare technology/interoperability space. A ton of startups here don’t seem to be affected. The one I work for is certainly thriving.
- kiliantics 4y agoI work in a healthcare startup too and can confirm that the interest in investing in innovative tech in this industry is only going up.
- cloudking 4y agoCan confirm, healthcare SaaS doing well.
- taylorhou 4y agoproptech is continuing to thrive. people need a roof over their heads whether it's to rent or own so startups solving problems surrounding renting/buying/managing/living in a home, apartment, condo, association, trailer, mobile park, co-op, furnished, short term, etc... will continue to thrive. btw, if anyone reading on HN is interested in joining a startup tackling the property management angle, hmu! my company helps manage 200k+ rental units across america and always interested in capable and enthusiastic folks to join.
- 0xfaded 4y agoI've been on the interview loop with robotics companies. Out of 20, only two had hiring on hold. Many were either already in a cash strong position or had cash strong backers who are long on robotics. I personally am long on robotics. The longer time horizon to market does mean ROI takes a hit in a high interest rate world. But I think the statement "the future will have more robots" is less controversial than some of the future scenarios that other companies are predicated upon.
- unixhero 4y agoThis is not a downturn.
- kkielhofner 4y agoIn the crypto ecosystem the compliance and anti-fraud space is doing very well (it's about time): https://techcrunch.com/2022/05/24/doppel-helps-nft-projects-spot-scams-fraud-counterfeit-crypto-yuga-dapper/ https://techcrunch.com/2022/05/24/doppel-helps-nft-projects-... https://www.coindesk.com/business/2022/07/20/ai-based-startup-optic-raises-11m-to-put-the-nf-in-nfts/ https://www.coindesk.com/business/2022/07/20/ai-based-startu... https://www.theblock.co/post/159791/center-raises-11-million https://www.theblock.co/post/159791/center-raises-11-million Shameless plug - Doppel and Optic are direct competitors for what I've been building: https://fnftf.io/ https://fnftf.io/ (We're the only solution that's publicly available). Not to mention the various Know Your Customer, mixer detectors, etc such as Chainalysis, TRM Labs, etc. I know crypto isn't popular on HN - given the amount of fraud, etc I've certainly jumped in here and elsewhere with plenty of comments and my thoughts elaborating on just how bad things are in the space (I do live and breathe it every day). My take is regardless of where you stand on crypto we should all be able to get behind solutions that are trying to clean up the space. Fact is it is here and (little) people are getting ripped off and scammed left and right. On a side note (and probably worthy of an Ask HN) I've been self funding Tovera for a year and we have yet to land any investment after six months of trying and hundreds of hours (minimum) spent on the effort. Plenty to be said about the good and bad of where we are and how my motivation and mental health is doing. Our three direct competitors are all technically inferior and well behind us yet combined they've raised $27m... Classic story of the value of vision, pitch, and salesmanship vs tech.
- bruceb 4y agoI don’t know about much about the space but my first impression is the initial pitch is confusing. Fight NFT Fraud sounds like a service for company buying/selling NFTs, and needs to stop attacks on their system and is actually slightly vague. Seems like people can check if a specific NFT is stolen or improperly minted? Lead with that. CarFax for NFT (but even more important) Is that NFT Stolen? Check now. Then after the submission box can go into more detail.
- kkielhofner 4y agoThank you for the feedback! Yes, I'm glad the core sentiment and functionality comes across. One of the biggest issues in the space (for Tovera and FNFTF) is that the crypto ecosystem is so sleazy no one in our targeted user/customer base (slightly sophisticated users and beyond) trusts anything or anyone - and rightfully so. In reaching out on Twitter, etc getting anyone to engage with something like FNFTF to even upload a PNG/JPG is near impossible. Install a browser extension?!?! Yeah right. Our most common response is "Nice try, scammer". This is why we have "Show me a Random Ape" and "What have other people searched" buttons. It's practically all anyone who visits the site uses because of the issues I mentioned. So that's why we try to lead with something above the fold. It's a chicken/egg reputational issue for us. Granted all of this is the creator and collector space - the real customer is an NFT platform, marketplace, etc that would integrate us in the backend somewhere so a user that already trusts wherever they are would inherently trust us.
- skrtskrt 4y agoAnyone who’s offering good product at a cheaper price point than the tech companies that got bloated over the last 5 or so years (Twilio comes to mind)
- AlwaysRock 4y agoTraditionally companies involved with gambling do VERY well during recessions. It's not really an industry I want to be in but a lot of folks I knew who worked on or build slot machines/slot machine tech got huge bonuses during the last 08-10 years. Plenty of smaller companies in that space if you look for them.
- CSMastermind 4y agoFanduel is hiring like crazy right now.
- lmeyerov 4y agoWe and our peers have been busy: - Gov, especially cyber + analytics (we do graph ai + gpu viz stuff) - Supply chain: A slowdown is happening, but COVID, regional conflicts, etc. makes needs for manufacturing etc. companies here super burning - Cyber + fraud: The need hasn't gone away (more automated attacks every day!), though companies based around VC blitz and pushing their gaping tech + operational holes to acquirers are hurting as fewer people happy to give them free $ - Devops was hard and remains hard. Digital transformation is an ongoing process and still needs a lot of help.
- leviathant 4y agocommercetools is seeing incredible growth, and it's only going to become more prominent in the ecommerce space. Having worked in ecommerce for a while now, I noticed back in 2008 that ecommerce flourishes when the economy goes sour. It's not strictly recession-proof- during the economic disruption, you will see separation of the wheat and the chaff, but new ecommerce technology that works gets supercharged. A decade and a half ago saw the emergence of Magento, BigCommerce, and while Demandware (based on Intershop) had been around for a bit, they emerged from the recession with afterburners on full blast. Shopify would hit stride later, eating into Magento and Demandware's lunch around the time they each got bought up for billions of dollars by Adobe and Salesforce, respectively. There were plenty of companies in the space that fell apart during the great recession too, but their talent moved on to the dominating players. You're seeing that happen during the last couple of years too. There have been some infamously rapid collapses - the implosion of Fast, Shopify's stock prices making a rapid return to normalcy. I strongly suspect you'll see other VC-backed 'disruptors' in the space fall apart. A newer 'headless' platform that talks a big talk recently put out a press release trumpeting a new deal that comically only listed former customers in the name-drop brag section of a press release, not a great look when you're the new kid on the block. Commercetools is where enterprise companies go to get away from legacy ecommerce platforms like Oracle (RIP), Salesforce, SAP Hybris, and homegrown systems - but in the last year it has also increasingly brought on graduates from the Shopify Plus and BigCommerce ecosystems.
- Sohcahtoa82 4y agoShameless plug: The startup I work for, Vivun, 4X'd our ARR over the course of our latest fiscal year and received a $75M Series C funding in May. https://techcrunch.com/2022/05/17/vivun-is-digitizing-pre-sales-and-just-got-75m-in-new-investment/ https://techcrunch.com/2022/05/17/vivun-is-digitizing-pre-sa...