In March of 2016 earlier this year I had written about how “Startups Remain Believers Despite the Warning Signs (article here), so I was enheartened to see an update by Katie Benner in the NY Times, August 28, 2016 Technology section that talked about how start-ups in Silicon Valley are beginning to narrow their focus (article here).
Seasoned venture capitalists warned that many start-ups would eventually suffer the plight of a very cold winter, and the worst was yet to come. However, despite these apocalyptic predictions, most start-ups are still here, but many of them have definitely made adjustments including layoffs and accepting smaller and more realistic valuations. Ms. Benner writes, “Entrepreneurs who once talked about how fast their start-ups were growing are now spouting from a bible of fiscal responsibility.”
Venture Capitalists are still sounding the alarms, and given the economy, the pending election, and world events, who knows what will happen to the stock market, and what that will do to the flow of funds for start-up ventures? However, as an entrepreneur, a business owner and a management consultant who has experienced the ups and downs of the marketplace many times, I am pleased to see that start-ups are paying attention and are more receptive to taking fiscal responsibility. My advice continues to be to take the time to understand your market, make adjustments where you need to, and also make smart investments where you need to as well.