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Well put. I think this time the bubble won't burst but slowly collapse. Insane valuations (ex. Slack) won't be possible and the employees who are making more th
by arielm 11y ago
Well put. I think this time the bubble won't burst but slowly collapse. Insane valuations (ex. Slack) won't be possible and the employees who are making more than their ROI and get the hope of get rich quick option plans will have to dust off their resumes and go work for the companies who handled expenses properly and focused on revenue and profit.
When will this happen? Soon. If you look at the number of seed vs. A vs. B+ rounds, you'll see that A rounds are on the decline. That's important because that's the stage where companies move from a startup to /real/ companies. Lack of A rounds means investors are willing to throw a little money (seed) on potential, or go big on proven success. That's usually great, but lack of A's means they're not willing to take any risk. That's a sign this bubble is deflating.
_FWIW - I'm a technical founder of a non-funded tech company._
- woah 11y agoWasn't there a "series a crunch" just a couple years ago?
- WalterSear 11y agoIt never stopped. It's been growing for some years, but until now, that has been due to a parabolic increase in angel rounds - the frequency of series A rounds has remained flat for a long time. If this has changed, it's a pretty large signal, IMHO.