Jaa

Is Silicon Valley really in trouble?

  • Artikkeli

A week ago we were all pondering the implications on the 700bn$ rescue package that the US government was planning to vote on. At the time there was hope that this could turn things around…. It was pretty clear to me that it was the end of the beginning…

The last week has been quite unprecedented in the fall the financial markets around the world and it seems to be effecting everyone, from my mother who looks after a small grocery store in the UK to the very entrepreneurs that the world looks to shape our future. Just from speaking to people this week, its pretty clear that the change has been remarkably quick in its transition, literally over the last two weeks, its almost like the world has stops trading.

To add more to this, it seems for the IT Industry, the biggest impact of this might be felt in Silicon Valley. Sequoia Capital one of the leading investment funds in the VC business had a crisis meeting yesterday with there portfolio companies, and were asked to buckle down to ready for the storm. I think that the situation will be really bad for any new companies looking for any kind of investment to continue.

More still, there was an article this week in the FT titled “Valley's investors heading for the hills” where many of the companies that emerged in the recent start-up boom will end up "spattered on windshields and radiator grills and be forgotten", said Michael Moritz who is a partner at Sequoia.

Lets hope this is not as bad as everyone predicts. Its a pity that the people that dare to dream the most are the first to hit the wall.

Next week I will be more happy, promise.

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