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All respect to Gary, I feel like "extinction level event" is quite hyperbolic. Obviously he cares about seeing YC companies survive but this is not going to wip

All respect to Gary, I feel like "extinction level event" is quite hyperbolic. Obviously he cares about seeing YC companies survive but this is not going to wipe out the US startup scene.

j_crick 4y ago
After reading that and playing some Kojima games lately, all I could think of was a Funds Stranding game.
version_five 4y ago
As bad as it sounds, even if it was an ELE*, I think killing off what has become a monoculture will not necessarily be all that bad for innovation or the ecosystem (it will be bad for the people at the companies that die obviously). Tan makes it sound like it will favor the balance of power to big tech. I think big tech is irrelevant here, and it may actually shift the balance of power away from SV stereotype startups and give some oxygen to other businesses. * honestly I think most solvent startups will find workarounds, it's more going to be a big stress than actual destruction
justinzollars 4y ago
It is an "extinction level event" for those whose bank accounts went to zero. We are talking about a large number of jobs and people effected. Its pretty sad really.
- ahzhou 4y ago
  It'll be a haircut (my uninformed bet is ~10% loss), but definitely not zero.
  - justinzollars 4y ago
    How do you pay staff with no money?
    - decodebytes 4y ago
      I do wonder how many left 100% of funds in there?
      - justinzollars 4y ago
        Its a risk many did not consider. Garry Tan says 30% of YC companies.
        JohnFen 4y ago
        This is what boggles my mind. How did they not consider and hedge against this risk? Why did their advisors not raise an alarm about this?
        justinzollars 4y ago
        Someone wasn't doing their job
        anthomtb 4y ago
        Is this is the source of that 30% number? > 30% of YC companies exposed through SVB can’t make payroll in the next 30 days. https://twitter.com/garrytan/status/1634286688922132481?s=20 https://twitter.com/garrytan/status/1634286688922132481?s=20

All respect to Gary, I feel like "extinction level event" is quite hyperbolic. Obviously he cares about seeing YC companies survive but this is not going to wipe out the US startup scene.

j_crick 4y ago

After reading that and playing some Kojima games lately, all I could think of was a Funds Stranding game.

version_five 4y ago

As bad as it sounds, even if it was an ELE*, I think killing off what has become a monoculture will not necessarily be all that bad for innovation or the ecosystem (it will be bad for the people at the companies that die obviously). Tan makes it sound like it will favor the balance of power to big tech. I think big tech is irrelevant here, and it may actually shift the balance of power away from SV stereotype startups and give some oxygen to other businesses. * honestly I think most solvent startups will find workarounds, it's more going to be a big stress than actual destruction

justinzollars 4y ago

It is an "extinction level event" for those whose bank accounts went to zero. We are talking about a large number of jobs and people effected. Its pretty sad really.

ahzhou 4y ago
It'll be a haircut (my uninformed bet is ~10% loss), but definitely not zero.
- justinzollars 4y ago
  How do you pay staff with no money?
  - decodebytes 4y ago
    I do wonder how many left 100% of funds in there?
    - justinzollars 4y ago
      Its a risk many did not consider. Garry Tan says 30% of YC companies.
      - JohnFen 4y ago
        This is what boggles my mind. How did they not consider and hedge against this risk? Why did their advisors not raise an alarm about this?
        justinzollars 4y ago
        Someone wasn't doing their job
      - anthomtb 4y ago
        Is this is the source of that 30% number? > 30% of YC companies exposed through SVB can’t make payroll in the next 30 days. https://twitter.com/garrytan/status/1634286688922132481?s=20 https://twitter.com/garrytan/status/1634286688922132481?s=20