"Let's all shed tears for the crappy startups that can't raise any more money." ~Dan Lyons
Adam Rifkin stashed this in Silicon Valley!
Dan Lyons tells us all to stop whining about not being able to raise money for our startups:
Here’s some stunning, Earth-shattering news: You know all those hundreds of incredibly stupid startups that have been raising seed money in Silicon Valley despite the fact that the people running those startups have no experience doing anything, ever, and have no idea at all how to generate revenue (let alone profit) with their lousy ideas, because, in fact, there is no way to make money with their lousy ideas, because in fact their ideas are lousy? Well, nobody wants to give those dopes any more money. So now they're going to go out of business. I know. Shocking. And the dopey angel investors who wrote the checks for those startups are going to lose their money. Because they can't foist their bad investments onto the venture capitalists who occupy the next rung up on the food chain. Believe it or not this is actually a big story in Silicon Valley right now. People are writing about this phenomenon as if it is a surprising turn of events.
Dan Lyons concludes that this whole thing is hilarious.
Or sad. He can't decide which.
Also awesome. Fail early. Just not early enough for some of the ones who got seed funding and probably shouldn't have !
We're talking thousands of companies.
It's actually pretty awesome- less crappy start-ups for VC's and angels to have to endure b4 they get to see the good ones! ... so in effect a higher % of funded start-ups should ensue once the "dopes" are weeded out ! .. yay ! win-win for all, less dopes, more awesomeness, higher ROI for investors, more seed money for the right companies who can and will go forth and be fabulous. Ahhhh. Pass me a cuppa.
Not time to celebrate yet.
Right now there's lots of still-alive companies vying for everyone's attention.
I also think the press is a lagging indicator. They're reporting this which means it WAS the attitude of 2012. Nobody knows what 2013 will be like.
Startups don't go out of business quickly,
It's in our nature to keep struggling long beyond what is reasonable.
He should probably start a startup, in all seriousness. He must know of some meaningful problem that needs solved; find it, solve it and then write back to us in a couple years with what he's learned...
Those who can do, do.
Those who can't do, criticize.
My favorite comment, below that article:
"MOM, Granddad is on the internet again!"
Haha, Jonathan I love that comment!
I'm working at a well-funded, well-positioned startup, refreshing skills, while I keep nursing and bootstrapping my own ideas. I've been a key player in a few startups, including my own. Generally, I know better unless the situation and people and flavor of the money are just right.