Could VC be a Casualty of the Recession?
20 hours ago
- VC funding may dry up in the recession, but startups might not decrease because starting a startup has become much cheaper.
- Costs have dropped due to Moore's law, open source software, free web distribution, and powerful programming languages.
- Many startups can be profitable with as little as $3,000/month, making VC funding a nice-to-have rather than a must-have.
- The connection between VCs and founders has weakened; the recession could cause a complete separation.
- Y Combinator reports record application numbers despite the stock market crash, indicating sustained founder interest.
- Founders increasingly view VCs as not worth the trouble; some startups succeed on minimal funding alone.
- If founders continue to start companies without VC, the venture capital industry could become irrelevant.