Web 2.0 implosion beings - You don’t want to start a business today
October 22, 2008
The second coming of the .com bubble is imploding before our very eyes. Many of these startups are VC backed, and recently Market Watch reported that VC firms are pulling money out of these startups… and pulling out quickly.
The problem stems mostly from the credit crunch, as these VC firms do use some serious loans to fund their operations, and many of these very young companies don’t have the resources to weather this storm, meaning we are set to see a new round of .com crashes.
And to make matters worse, the same report noted what we already suspected:
Angel investors are seeing their own personal portfolios take a hit, and therefore have less to work with. Attempts at bootstrapping will be harder for entrepreneurs because they will not be able to use their homes as piggy banks, and friend and family financing will be harder to come by as the credit crisis hits consumers’ own pocketbooks by limiting credit cards with large balances.
This is one of the roughest economic conditions since the .com crash for this industry, and by all measures, things are just about to get worse.
Comments
Recognized by Advertising Age Magazine as top Power 150 news outlet for Advertising and Marketing.
Recognized and listed in Google News. Don't stress, we're Satire
Ad Agency Advertising
