A deluge of European startups descended on London’s ExCel Centre for the Future of Web Apps 2008 conference this week, and while the economic crisis has already reached Europe, the fear clearly hasn’t reached its startup community.Via GigaOm
OK so its hard to deny that everything in the world is in melt down, but it seems like we aren’t happy talking ourselves into economic crisis, i.e. Panic and Fear. Lets stifle startups and companies who want to make it big.
There is lots of talk of recession the fact remains we are still technically not in a recession:
Recession: 2 consecutive quarters of negative growth.
While it makes sense to make your business ‘recession proof’ there is no reason to stifle creativity and laugh in the face of the entrepreneurs who want to succeed even in these difficult times. Sequoia Capitial is telling everybody to bunker down and take not that the good times are well and truly over, but how does this become recession [1]. There are still great people out there with great products and with or without recession great products sell. Its just the latter makes harder but no the less rewarding.
I think its very dangerous given our current outlook, we are teetering on the brink of complete meltdown and conservative estimates put the recovery at 5-6 years. We need to encourage people to keep going, and keep the economy ticking over. That is the only way we can make sure that we weather the storm.
Speaking from experience from a number of companies I am working with, we are definately not in a recession yet. Spending has increased this month for the forth consecutive month and shows no sign of decreasing, what is interesting to note is the items sold. They are on average £15 – 25 items, which is signigicantly different from this time last year when we saw sales of items averaging £70 – 90. The fact still remains people are still spending money, lots of money. Walk down your local high street and tell me there isn’t money changing hands.
Top and bottom is that common sense will win out on this one, and the startups with a bad idea or an idea that doesn’t work for whatever reason will not weather. For those that do the investment they need is still on the cards, but its gonna be much more difficult to get investment if your not a sure bet. Greed got us into this mess, common sense and sensible investment will get us out.
A good concept wins out always, regardless of external factors.