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Wouldn't layoffs starting at larger tech companies imply demand is waning and there would be a much smaller market for all of these new startups?

nradov 4y ago
Demand is always growing in some markets. I predict major growth in the defense and agriculture technology markets over the next decade.
- acdha 4y ago
  Clean tech also seems big - even if the Republicans did manage to gut federal support for renewables (I’m doubtful given e.g. how much money Texas wind farms are making) consumer trends are looking solid and a lot of state policies represent locked-in market.
nkozyra 4y ago
Demand for what, though? Startups can cover ... well anything, really? There's certainly less demand for Facebook's style of social media, for sure.
schnitzelstoat 4y ago
Yeah, ads revenues are down which means a whole load of ad-supported business models are no longer economically viable. I don't think a recession with low demand and high interest rates is a good time to start a company at all.
reaperducer 4y ago
Wouldn't layoffs starting at larger tech companies imply demand is waning and there would be a much smaller market for all of these new startups? It depends on how you define "startup." They don't necessarily have to keep staring at screens for their living. It was mass layoffs of real estate and banking workers in 2008 that kick started the food truck industry.
acdha 4y ago
This is a valid concern in a recession but there are different niches and business models. Facebook has been very profitable selling ads but that’s not the only option, and there are opportunities which might be a good fit for a small company which a big one is structurally incapable of finding. After the dotcom crash, I knew several people who found solid niches selling services to other businesses - it didn’t have the hypergrowth potential of something like an ad-supported social network but most of those fail, and there’s a lot of money in less sexy industries.

nradov 4y ago

Demand is always growing in some markets. I predict major growth in the defense and agriculture technology markets over the next decade.

acdha 4y ago
Clean tech also seems big - even if the Republicans did manage to gut federal support for renewables (I’m doubtful given e.g. how much money Texas wind farms are making) consumer trends are looking solid and a lot of state policies represent locked-in market.

nkozyra 4y ago

Demand for what, though? Startups can cover ... well anything, really? There's certainly less demand for Facebook's style of social media, for sure.

schnitzelstoat 4y ago

Yeah, ads revenues are down which means a whole load of ad-supported business models are no longer economically viable. I don't think a recession with low demand and high interest rates is a good time to start a company at all.

reaperducer 4y ago

Wouldn't layoffs starting at larger tech companies imply demand is waning and there would be a much smaller market for all of these new startups? It depends on how you define "startup." They don't necessarily have to keep staring at screens for their living. It was mass layoffs of real estate and banking workers in 2008 that kick started the food truck industry.

acdha 4y ago

This is a valid concern in a recession but there are different niches and business models. Facebook has been very profitable selling ads but that’s not the only option, and there are opportunities which might be a good fit for a small company which a big one is structurally incapable of finding. After the dotcom crash, I knew several people who found solid niches selling services to other businesses - it didn’t have the hypergrowth potential of something like an ad-supported social network but most of those fail, and there’s a lot of money in less sexy industries.