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The mentality does, however due to lack of funding they tend to fizzle out fairly quickly. I would argue this is actually a bad thing and it's why the Bay Area
by robbrit 12y ago
The mentality does, however due to lack of funding they tend to fizzle out fairly quickly.
I would argue this is actually a bad thing and it's why the Bay Area tends to produce lots of successful tech companies and other areas have trouble with it. Many would-be profitable businesses die out because they lack the funding necessary to get over the initial hurdles of starting a company. The willingness of investors in the valley to throw money at anything is a huge boon to startups - even if it wastes a ton of money in the process.
On the other hand profitability should still be a top goal of a startup - not investment. Many startups seem to have confused the two.
- wadenick 12y agoYou make a good argument, and I'd only add that during an uptick in the tech sector, it becomes easier to get funding and so a series of effects flow from there. More people get funding, and more of it, and the risk profile and spread changes - probably to include more players that have less chance of success. For my anecdotal experience I can say I have friends in 2015 who are working for good salary at funded startups that have quite literally no idea what mission or product they are making right now, whereas in 2010 my friends were mostly contributing sweat equity in return for actual equity.