Dear Mr. Poland: Yes, it will end badly

This is a quick response post to http://techcrunch.com/2011/11/27/will-it-end-very-badly-probably-not/ 

Yes, little startups are ridiculously overfunded. Yes, the market is ridiculously overcrowded with early stage investors. Yes, it results in a talent drain, where the best talent gets diffused and work for their own startups. And YES IT WILL END BADLY. The big companies lack the necessary personnel for tuning-up their core functions. I mean: did google search got better, over the last for instance 1 year? Or did Facebook made sharing a lot easier in that time? No they’ve invented lots of new geeky and shiny new functions and projects which attracted new staff, but they are unable to make their basic core functions better (Ok, Google+ is an exception). Maybe nobody wants to work on this anymore…

Why? Lots of talents out there are working all by themselves on a new, more shiny version of an already existing product, app, or an integral function of an already existing app. And they call it THE Startup Why? Because they can afford to! Are these new shiny version of apps / of functions of already existing apps really worth so many hundreds of millions? Wouldn’t it be better for the economy if these guys started working in companies already making huge money, and tune them up?

And let us don’t forget: the world financial crisis. You think it’s over? It hasn’t even started. How are you going to find VCs when the Euro will fall? When the market will take a deep dive south? It will be a nuke annihilation of all those overpriced startups, unfortunately… Who will have the guts to invest in these startups in crisis?

Waiting for a Facebook IPO to see what happens…

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3 thoughts on “Dear Mr. Poland: Yes, it will end badly

  1. Pingback: Auto tweet needs tweaking for big players « Bare tech

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