The “Great Tech Depression” Generation January 19, 2007
Posted by John in Technology.trackback
Interesting story by Pui-Wing Tam at pui-wing.tam@wsj.com and Rebecca Buckman at rebecca.buckman@wsj.com. The real story here is that we have a generation of entrepreneurs (me included) who have lived through the “Great Tech Depression”.
The journal is reporting accurately that startups are watching their cash. Duh. There is a rational that clearly entrepreneurs who have lived through the last ‘cycle’ or better said ‘depression’ are ontop of their cash position unlike in the dot com days. I agree but I caution all my fellow entrepreneurs.. be careful. It’s not about being ‘thrify’ but instead get revenue going. I’m not impressed with companies that have good saving habits but ones with the ability to make money.
The journal reports this line about Bill Nguyen “Since getting $9 million in venture-capital funding in mid-2005, Lala Media Inc. has stashed 60% of that money in the bank. ” Maybe the quote should say “Since getting 9 million in venture-capital funding in mid 2005, Lala Media Inc has failed to develop a revenue model but they have an uncanning ability to watch expenses.”
I think I like your version as well. We may be seeing the industry last a little longer this time if they put the money into their savings account. I had an ex-wife like that “Honey we need to “dip” into our savings again.”
[…] thoughts on the WSJ, check out Digital Alchemy, USA Today’s Kevin Maney and PodTech’s John Furrier, who rightly makes the point that the focus for start-ups shouldn’t be on being thrifty but, […]