In 2001, the first dot-com economy collapsed. New companies couldn't raise funds to continue operating. Existing companies couldn't go public or get bought. My employer (Red Herring) folded, as did hundreds of other businesses. Almost all companies with speculative growth-based (as opposed to revenue-based) business models died off. And Aeron chairs flooded the market.
We're heading into another start-up downturn right now. Erick Schonfeld on TechCrunch points out how the credit crunch will lead to a venture crunch, and Jason Calacanis' latest e-mail newsletter predicts that "50-80 percent of the venture-backed start-ups currently operating will shut … Read more