What the technology layoffs tell us about entrepreneurial management
TechCrunch is tallying a list of startups that are undergoing significant layoffs. (Interestingly, it's not seeing much noise from Europe on that front.)
Every day we're hearing about yet another startup (or established technology vendor) going through layoffs. This may mean that the companies are battening down the hatches in preparation for a nuclear economic winter, but it also likely means that these same companies haven't been prudently managing their VC's investments.
It took Sequoia Capital to describe the obvious: we're in a tight, recessionary economy. But any CEO worth her salt should have seen this long ago. I wrote back in February about a pending recession and its effects on open-source startups like SugarCRM, but I was no prophet: everyone was talking about a weakening economy.
I guess it took the collapse of a few financial institutions to convince us that we actually have to start treating our companies like businesses, not Monopoly games. Perhaps we were distracted by cutesy Web 2.0 names. More likely we were distracted by the cutesy Web 2.0 revenue models that are long on marketing and short on substance.
Source
TechCrunch is tallying a list of startups that are undergoing significant layoffs. (Interestingly, it's not seeing much noise from Europe on that front.)
Every day we're hearing about yet another startup (or established technology vendor) going through layoffs. This may mean that the companies are battening down the hatches in preparation for a nuclear economic winter, but it also likely means that these same companies haven't been prudently managing their VC's investments.
It took Sequoia Capital to describe the obvious: we're in a tight, recessionary economy. But any CEO worth her salt should have seen this long ago. I wrote back in February about a pending recession and its effects on open-source startups like SugarCRM, but I was no prophet: everyone was talking about a weakening economy.
I guess it took the collapse of a few financial institutions to convince us that we actually have to start treating our companies like businesses, not Monopoly games. Perhaps we were distracted by cutesy Web 2.0 names. More likely we were distracted by the cutesy Web 2.0 revenue models that are long on marketing and short on substance.
Source