Investors Go Back to Basics?
from the this-would-be-a-good-thing dept
The NY Times has an article about what the current market is doing to startups and people thinking of starting up companies. I think it’s a great article because it points out a lot of important things, and yet doesn’t go overboard on the hype. First off, it shows business school students who are suddenly running scared because the market has had a downturn. If a market downturn has you running scared, you shouldn’t be starting a business in the first place. It just shows your only reason for starting a business was to get filthy stinking rich rather than create real value. Second, it points out that experienced investors see the downturn as somewhat healthy. This is something I really believe in. Some folks may get hurt, but overall, it’s much healthier. Third, it points out that this may give companies more time to really build up a company. This is a very good development. I think most dot coms today are crappy companies, mostly because they’re pushed into ridiculous development/release schedules and then forced to go public before they should. While I doubt this will all change as quickly as everyone now thinks it will, it would probably be for the best.