NYTimes is saying things are imploding in Silicon Valley, but there is no crater here. The core Silicon Valley economy around startups, entrepreneurship, and veture capital is not imploding. Sure Silicon Valley is affected by the public market meltdown, but remember there has been no public market for startups for some time. Unlike the dot com bust which cratered the startup market, this crisis has not imploded the startup market. In 2001 that crisis hit the VCs directly not this time.
Why? The VCs still have money and will invest in early stage deals and Series A financings. That is not true for Series B and Series C financings. It’s turning into a game of survivor.
My advice to startups: find people who can bring in revenue and find people who can quickly retool existing product that can generate revenue. Sure the email about cost cutter goes without saying. The new marching order is get revenue and have products that generate revenue.
I expect some of the best innovation to occur. Surival is the objective either by raising money from your VCs to outlast the competition or bring in sales revenue. Either way outwit, outlast, and outplay your competition.