Re:Startups Once Showered with Cash Now Have to Work for It
by carsongross on Saturday May 21, 2016 @07:25PM
(#11746668)
I was joking that the lack of free cash might focus the VC-backed startups on areas where bootstrapped (and presumably profitable) startups already are.
I don't actually think that will happen much: typically the structural costs associated with VC-backed companies is too high (e.g. SF rents) to even get close to what bootstrappers can do.
Conventional reasoning is that decreased VC investments is actually good news for bootstrappers, as it winnows down the competition of people offering unsustainable unit prices with outsized markets. If everyone is forced to seek fast profitability, bootstrappers are the most experienced at it.