Rut-Roh-Scooby-Doo in Chart Form: Start-Ups Start Stopping
by Kara Swisher
Posted on February 12, 2009 at 7:00 AM PT
Here’s a chart from a not-entirely-unexpected story in The Wall Street Journal today chronicling how the “deepening recession is speeding up the shakeout in Silicon Valley, forcing droves of start-ups to shut down or sell themselves at fire-sale prices.”
You knew that was coming, didn’t you?
No really well-known Web 2.0 shooting stars are in the piece, although it really feels like a long time from when BoomTown penned a piece in September titled “Dear Web 2.0: It’s Still the Economy, Stupid!”
It still is, and here is a not-so-lovely pair of charts to show you why:
Comments
companies that build solutions to problems are the winners in any economy
Posted by Sam Harrison at February 12th, 2009 at 12:37 pmIf you only look at start-ups as being those companies who require third-party funding (venture or bank), then things are indeed slowing down very quickly.
However, people are definitely still looking to start businesses. One of our web sites is a popular small business portal, morebusiness.com. We have noticed our traffic increasing dramatically in the last two months, particularly for pages with start-up information. From what we can see, lots of people are looking to start a new business in this economy (perhaps due to a job loss).
Posted by Raj Khera at February 13th, 2009 at 12:08 pm