BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Tech Observer >  

Financial Crisis Great Tech Start Ups In Iphone Beer Simulators Out

Tech Observer

by Kevin Maney
Main
RealNetworks Files Preemptive Lawsuit Against Hollywood   Last Bytes: RealNetworks, YouTube, Microsoft, Iron Man

Recent Blog Posts

Links

Sep 30 2008 4:59pm EDT

Financial Crisis: Great Tech Start-ups In; iPhone Beer Simulators Out

Kevin Maney writes: Certainly tech guru Tim O'Reilly is onto something when he says that in this economy, if your tech start-up is making a beer chugging simulator for the iPhone -- you may want to rethink things.


But what's going to happen to one of the great engines of the U.S. economy -- i.e., tech start-ups? Some on the Web argue this could be a bleak time, with sources of money drying up and squeezing off all but the most robust start-ups. VC Fred Wilson has a more thoughtful take, signaling that venture-backed start-ups probably will be fine -- although new companies might have a harder time getting funding for a little while.

As I'd noted early in this financial debacle, tech start-ups often benefit from down times. One of the worst situations might be to start during good times with one set of expectations and have to adjust. But going forward, new start-ups will be born into a market where they have to keep costs low and take their time building a profitable business model. When things turn up again, those companies are in a tremendously good position.

In general, the Wall Street mess looks worse the closer you are to Wall Street. Silicon Valley will certainly feel the effects, but should be able to keep the start-ups and innovations coming. Let's hope so.

...

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com
Like Portfolio on Facebook

Come on, like us—you know you want to.

Follow Portfolio on Twitter

Follow us and if you're an innovative entrepreneur, we'll return the favor.

The Mix

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow