[email protected]+ Your Authors @Jason I'm the angel investor who backed @uber @thumbtack @wealthfront @datastax @robinhoodapp @desktopmetal & @calm 3 years before you became addicted to them May. 14, 2020 1 min read + Your Authors

1/Founders of real-world startups (RWS): If you're running a business in the real world & you've lost 80-100% of your revenue your job is to survive so that you can hire everyone back when consumers return sometime in the next 6 months

Here's what I'm seeing... it's terrifying:

2/Unless a "real-world startup" (RWS) happens to have a year of cash in the bank (~20% of RWS in my experience) they are #furloughing everyone & giving select team members consulting gigs (or sometimes one FT person) so they can manage OIH:
"operations in hibernation" 🐻

3/founders are setting benchmarks for coming out of hibernation, like "when we can sell our product again we will bring back 2 team members" & "When we hit 75 orders a day for 10 days we will bring back another team member"

This uncertainty is brutal for founders & teams ☹️

4/Fundraising is turned off for RWS, as investors seem to think it's hopeless to meet with these business until we know the outcome of #SiP

It's logical, as investors need to preserve capital for digital companies, which are a mixed bag of surging revenue, sideways & down 🤷‍♂️🤷‍♀️

5/board rooms & management teams have moved quickly from confusion to shock and now on to capitulation:

"OH MY GOD!!!"
"Oh no..."
"OK"
"Oh well"

No one knows the future, so an abundance of caution is the new standard.... and that's the big problem:

6/with so many folks hibernating & investors pausing, RWS are pausing on paying their bills (!!)

monetary velocity is slowing to a halt... with this business slow down folks are not spending on marketing... so journalism is decimated & obviously SaaS spending will be reexamined


You can follow @Jason.



Bookmark

____
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Since you’re here...

... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.


Follow Threader