4 ms·

How does this jibe with all the news / media hype about Startups facing impending doom and the big squeeze to focus on profits vs growth (which means cutting st

How does this jibe with all the news / media hype about Startups facing impending doom and the big squeeze to focus on profits vs growth (which means cutting staff): [0] https://news.crunchbase.com/venture/monthly-vc-funding-recap-seed-downturn-july-2023/= https://news.crunchbase.com/venture/monthly-vc-funding-recap... [1]https://news.crunchbase.com/startups/tech-venture-survival-profitability-itay-sagie/ https://news.crunchbase.com/startups/tech-venture-survival-p... [2] https://news.crunchbase.com/startups/unicorn-sector-investors-winners-losers/ https://news.crunchbase.com/startups/unicorn-sector-investor... I can go on and on. Maybe for the MAFANG's life is going .. ok, but it seems in startup land, the sky is still falling? Or is this all a head fake?

disgruntledphd2 3y ago
It's both. Profitable companies mostly did performative layoffs (they sacrificed some of their employees to appease the gods of wall street), whereas for lots of money losing startups, they should never have hired as many people in the first place. Unless the startup has incredible PMF (and sometimes even then), they won't be hiring at least till mid next year, as lots of them need time to grow into their valuations. Also, the ridiculous AI stock price boom of this year has left the profitable companies (MAGMA) with no need to reduce headcount to juice their income statements.
- rexreed 3y ago
  So in sum, the Big Tech job recession (might be) over, but the Startup tech recession stays on. There have been a lot of AI startup failures over the same period as the credited GenAI boom. GenAI is favoring large, entrenched companies, and startups (and the hype-following VCs and investors) might want to look elsewhere for big opportunities.
  - disgruntledphd2 3y ago
    Yeah, basically.

4 ms·

How does this jibe with all the news / media hype about Startups facing impending doom and the big squeeze to focus on profits vs growth (which means cutting st

by rexreed 3y ago

disgruntledphd2 3y ago
It's both. Profitable companies mostly did performative layoffs (they sacrificed some of their employees to appease the gods of wall street), whereas for lots of money losing startups, they should never have hired as many people in the first place. Unless the startup has incredible PMF (and sometimes even then), they won't be hiring at least till mid next year, as lots of them need time to grow into their valuations. Also, the ridiculous AI stock price boom of this year has left the profitable companies (MAGMA) with no need to reduce headcount to juice their income statements.
- rexreed 3y ago
  So in sum, the Big Tech job recession (might be) over, but the Startup tech recession stays on. There have been a lot of AI startup failures over the same period as the credited GenAI boom. GenAI is favoring large, entrenched companies, and startups (and the hype-following VCs and investors) might want to look elsewhere for big opportunities.
  - disgruntledphd2 3y ago
    Yeah, basically.