So What If There Is A Tech Bubble?
So what if there is a bubble in tech?
How does that affect you?
Really, seriously, how does it affect you? My guess is it doesn’t really impact you. But you choose to read every funding announcement on Crunchbase and every VC Blog Post. Why do you do that to yourself?
If you are a startup and your company is not ‘Slackesque’ or (to use the most ironic word in tech circles these days) a Unicorn, regardless of how much money is being thrown around, you won’t be able to raise money at an astronomical valuation anyway. Or if you are not Webvan/Instacart your business model is probably not novel enough for investors to throw lots of money at you. Or you have a startup with no market need? You were going to shut down eventually! So why do you care about the existence or otherwise of a bubble?
If you are a VC and you are not Bill Gurley, who will continue to get money from LPs regardless of how bad the markets get if there is a bubble burst, then you probably need to be finding another job anyway. Or if you are not Andreesen Horowitz, who will continue to say ‘it is different this time’ (even if different could mean it is better or might be worse than before), no one is/was listening to your perspective anyway. Why do you care about a bubble again?
What if you are an LP and this is really a bubble? So you lose some of your paper money. I assure you you’ll be fine. It’s a cycle, sometimes you make more paper money and sometimes you lose paper money. You weren’t going to be able to spend it all anyway.
And if you are an employee at a startup that is burning money like it’s 1999? It’s not a bubble that will kill your company, it’s bad management. You are going to need a new job soon whether there is a bubble or not, dust off your resume. Software is eating the world so there will still be jobs just not as much free food and of free yoga sessions offered by your new employer. I assure you things will work out. Bubble? Schmubble!
What if you are customer of a company that is a partaker in the existing or non-existent bubble? Store your files and valuable data in Gmail or Google Drive (secure and Evil so they aren’t going anywhere) so you can access them when the company goes under and can’t keep the lights on. You were backing up those Box and Dropbox files using Google products anyway. You’ll be fine!
So really, seriously, how does a bubble affect you again?