I feel sad seeing the plight of founder friends who raised millions and burning cash like there is no end.
With the new normal, investors are asking founders to cut costs. And turn profitable overnight.
As a result, there is mass layoff.
In the first place, these companies had no PMF and burnt money in all directions to find one.
Now, with no money or PMF, these companies are at the crossroads of death or acquihire.
I see the next 10-12 months as a feast for PEs as they will be on an acquisition spree. Many startup founders take a job, and the luxury of overall employees is affected.
It’s an economic reset, not an entrepreneurial reset. After the US election, things should come back to normal. But before that, many startups will die.
The race to reach quick PMF with money, funding, or hundreds of team members has failed. You can’t fatten a pig and make it ready for feast overnight. Things take their own time.