Conventional wisdom says the first option, a healthy economy, is the best. But who said the tech community was conventional?
The Sub-Optimal Time Is the Best
Launching during a poor economy for startups will mean that VCs are more careful, more cautious, and more demanding. For a great startup, that’s a good thing. For a bad one, it’s terrible. Basically, a poor economy will supercharge the successes and bulldoze the failures. The system works best when everyone is cautious. Aaron Burcell, writing for Mediashift, explains why this counter-intuitive fact holds true:
Which Is Now. So, Get Launching.
The economy is on a downturn. 30 percent of all U.S. unicorns will sell for under a billion, for instance, even though they’re getting the majority of 2016 funding from cautious VCs who want a “sure thing.” Again, from Burcell: Have a strong concept? Launch a startup. Not sure if you are? Hang back and try another iteration. If you think you’ll fail, you definitely will. Which could be why the tech world has so many egotistical CEOs, come to think of it.
