I’ve just read Paul Graharm (partner of YCombinator)’s question of whether VCs could be a casualty of the recession. If you want a detailed read, please go here: http://paulgraham.com/divergence.html or follow the summary below:
- Starting up a startup is much cheaper: Moore’s law has made hardware cheap; open source has made software free; the web has made marketing and distribution free; and more powerful programming languages mean development teams can be smaller.
- Once you’re profitable (even a few thousand bucks/month) you don’t need investors’ money. VC money turns from must-have to nice-to-have.
- This recession is different. People keep starting up instead of going to grad schools.
- If VC don’t keep writing checks , they could become irrelevant when the economy bounces back.
Of course the conditions for starting up a company in the US is way too good compared to those for Vietnamese. But it can be generally assumed that things get increasingly easier these days to get started. So, in your opinion, will IDG become a casualty of the recession? (oh by the way, the recession is not that acute in Vietnam).