It is in fact true that considering the state of the global economy, venture capitalists (VCs) have tightened the purse strings. However, according to a recent article by TechCrunch , if something is not original, but well-understood as a successful strategy, the barriers to entry will be low — and many will jump in to take advantage.
The article states that what may have worked six years ago can easily shut shop before you know it in this day and age. It certainly has little to do with any kind of global crisis, since the ‘start-up class of 2008-2009’ included companies that have become names synonymous with the services they provide: Dropbox, Airbnb, Pinterest, Uber and Tiny Speck (Slack). All these now multi-million dollar companies all got their early funding in those dismal years.
While not everyone agrees that there is a massive downturn in the start-up world right now, many are acting as if there is, says the article. This herd mentality is both a crisis and an opportunity (or a ‘crisi-tunity’), believes the writer.
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