Start-ups are getting anxious. Well, perhaps they’re not, but people are beginning to observe that tough times could lie ahead, particularly for web 2.0 companies in search of a revenue model. In fact some start-ups are already claiming themselves to be victims of the radically changing economy.
But wait, aren’t we missing something here? What is the economy if not a collection of smaller economic entities, like corporations and the markets they sell into? Claiming that you failed because of economic conditions ignores the fact that you are economic conditions.
It seems like a peculiarity of the early-stage technology world to isolate oneself so much from reality. Companies don’t fail because consumers and businesses don’t want or need what they’re selling; they fail because the nebulous economy casts them aside like a one-night stand.
What’s happening right now is not “unfair” or necessarily tragic, instead it’s how companies have always failed, except for very brief periods in the bubble.
The good news? Companies getting funded now, companies increasing revenue now are far more likely to be painting an accurate picture of where the market’s headed than was the case 18 months ago.
