The Reason Why Startup Incubators and Investors Are Signaling Doomsday
It’s kinda their own fault
If you’re an entrepreneur and didn’t get the pants scared off you last week reading the “leaked” YCombinator founder memo calling for their incubees to go to the mattresses, don’t bother. It’ll only fill you with dread.
You may also want to steer clear of all the subsequent memos that were spit out shortly after by other investors who hopped on the suddenly fiscally conservative bandwagon as it seemingly raced by.
I’ll TL;DR all of the hand-wringing for you.
Easy money is over. Everything in those memos, all the doomsday warnings and all the recommendations, those are 100% accurate and warranted. The economic downturn that is part inflationary pressure, part global instability, and part “we threw way too much money at things that probably didn’t need money,” — it’s going to hit you, me, and a lot of people we depend on to make our businesses work, grow, and profit.
But those warnings have been true for a while — philosophically, they’ve been true forever — and to act like this is some startup-eating monster that’s now lumbering over the horizon feels like sweeping a lot of laissez faire irrational exuberance under the rug.
