Re:Sorry, Startups: Party's Over
by vaksel on Thursday October 09, 2008 @11:21AM
(#327890)
thats the problem isn't it? Almost all of these venture backed startups have been pissing money away left and right. This credit crunch won't affect those startups that are self funded. The only ones that'll be affected are those with huge staffs which they can't afford in the first place
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Re:Sorry, Startups: Party's Over
by cstejerean on Thursday October 09, 2008 @12:44PM
(#327982)
Just because your startup is self funded doesn't mean you won't be impacted.
* If you charge money for a product and your customers are no longer willing to spend money, you're in trouble.
* If you rely on advertising for revenue and companies reduce their ad spending, you're in trouble.
* If you're hoping to get acquired and your potential acquirers are no longer able to spend money because of plummeting stock prices, you're in trouble.
the difference is that a small team startup has to make a lot less revenue to survive. A big new startup on the other hand would have a few million a year just in salary expenses.