
Startups:  Financial Markets Impact? - dherman76
http://www.darrenherman.com/2007/08/17/the-financial-market-a-noobs-take/
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nostrademons
If 2000 is any indication, all the funded startups with high overhead will go
out of business, all the bootstrapped startups with 2 guys in a garage will
tighten their belts, and we'll end up with a lot of startups changing their
business model.

Some of the most successful startups of the first 5 years of the decade were
born during the tail end of the dot-com boom and survived the recession.
HotOrNot launched like a month before the NASDAQ peaked, had to go
subscription, and then started earning millions a year. Blogger was started in
1999, laid off everyone in the bust, and then reemerged as the market started
warming up. Flickr did most of their innovation and programming during the
bust. Del.icio.us was the last of a string of side projects done while Joshua
Schacter kept his day job.

I just read Phillip Kaplan's _Fucked Companies_ , and the one thing that all
the dot-com flameouts had was that they took millions in funding and hired
hundreds of people. The one thing that all the survivors had was that they
hired no more than a dozen people and had or found a business model that
actually brought in cash. Make more money than you spend.

