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And by definition none of them had a profitable business model. The investors were hoping to pawn off their investments to an acquirer or the public markets -

And by definition none of them had a profitable business model. The investors were hoping to pawn off their investments to an acquirer or the public markets - ie “the greater fool”. The investors knew they couldn’t find a bigger fool and are left holding the bag. They were “tightening their belt” a profitable company doesn’t have to worry about that.

shakezula 4y ago
Did you read what I wrote at all? Why are you being so combative, lol. My partner’s company is not seeking funding and is profitable. Still had layoffs. Another friend’s company is profitable but did happen to be seeking investment. Still saw lay offs. Why do you insist on looking at this through the lens of funding and refuse to acknowledge that companies see a rough economy ahead, regardless of their funding status?
- deleted 4y ago
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allisdust 4y ago
Even the profitable ones too are under pressure to show YoY and QoQ growth. To make that happen, belt tightening has to happen. So take away is no one is growing or expected to grow in the coming year.
- scarface74 4y ago
  The startup I worked for before my current company sold services to health care systems. It was hit hard by Covid. Hospitals were losing money and not paying for new products or even old ones. My CTO said specifically “we need everyone we have and we aren’t going to be successful by laying off people. We have a vision and we need you all to help execute it”. They were bought out less than 9 months later for 10x revenue. I had moved on to $BigTech by then after leading their “cloud modernization” efforts. The profitable tech companies are using it as an excuse to get rid of dead weight. No one is going to come after Cook, Jassy or Nadella for short term revenue misses. Facebook and Google still have founders who own more than 50% of the voting shares. No one can come after them. You can say a lot about the big 5. But none of them can be accused of short sightedness.

shakezula 4y ago

Did you read what I wrote at all? Why are you being so combative, lol. My partner’s company is not seeking funding and is profitable. Still had layoffs. Another friend’s company is profitable but did happen to be seeking investment. Still saw lay offs. Why do you insist on looking at this through the lens of funding and refuse to acknowledge that companies see a rough economy ahead, regardless of their funding status?

deleted 4y ago
[deleted]

allisdust 4y ago

Even the profitable ones too are under pressure to show YoY and QoQ growth. To make that happen, belt tightening has to happen. So take away is no one is growing or expected to grow in the coming year.

scarface74 4y ago
The startup I worked for before my current company sold services to health care systems. It was hit hard by Covid. Hospitals were losing money and not paying for new products or even old ones. My CTO said specifically “we need everyone we have and we aren’t going to be successful by laying off people. We have a vision and we need you all to help execute it”. They were bought out less than 9 months later for 10x revenue. I had moved on to $BigTech by then after leading their “cloud modernization” efforts. The profitable tech companies are using it as an excuse to get rid of dead weight. No one is going to come after Cook, Jassy or Nadella for short term revenue misses. Facebook and Google still have founders who own more than 50% of the voting shares. No one can come after them. You can say a lot about the big 5. But none of them can be accused of short sightedness.