Whats going to happen when the startup bubble bursts

Are you too young to remember the .com crash?

Pornhub
Redtube
xvideos
Brazzers
Twistys

blacked.

>trying to be like google when you have a shitty product can't last long
this is a part of it. people enjoy the meme aspect of a startup. people want stock options from day one, when they haven't added anything, and bills are barely being paid.
a 'startup' is a business that isn't making money, but has a good 2 sentence pitch that convinces a VC that it might not be the worst of his 9 out of 10 businesses that fail, so they get enough 'angel' investment to make it till the next quarter and the cycle can begin again.

a 'business' is a business that breaks even asap and increases profits over time.

make a business, don't start a startup.

name 5 successful private start-ups and you can guarantee they're operating at a loss

don't be stupid

uber has a 60 billion dollar valuation, they're not profitable, their business model may not be sustainable and they are going through crazy lengths to recruit drivers (car financing that debtors will likely default on)

nothing.

1 of 20 start up is a success. the other 19 is a great source of learning and innovation.

>this entire post

A startup is a business built for rapid growth.

The idea of a meme startup with a full-time chef and masseuse is just a meme. Only large companies do stupid shit like that.

they all spend $$ on nice offices, employee nights out and free snacks / catered meals

I've worked in and around startups. I haven't personally seen any with a justifiable product

failure as learning is the meme of the industry

you won't see investors thinking similarly. business are built through perseverance not a glorification of failing

many of them are built by rich kids that have replaced mommy and daddy with angels and vc's

Yeah, I agree that building a sustainable business is a lot easier and more reliable than a start up.
I think the whole idea of creating something, getting it popular, then trying to figure out how to monetise it is a bullshit strategy that the bottom will fall out of.

Start ups sell hype, nothing else.

>A startup is a business built for rapid growth.
aren't all businesses built for rapid growth? a bar opens with the intention of going from 0 sales to good sales to being very busy all the time in a short period, maximising its place in the market.

a company that sells Product X has the intention (or should have the intention at least) to begin trading and increase sales as quickly as possible in its market.

i think you are right about the meme though, but meme warfare has won in a lot of cases. Did you ever watch Startup U? i know it was a cheap tv show for late-teens, but i caught a few episodes including the final and most of the 'Entrepreneurs' in the show all had meme ideas and were bickering about 'Founder status' and share of equity.

mindset plays a big part, and i think media has created the startup meme which makes people think that creating an idea that doesn't generate money & get bought out is the key to business.

rapid growth is zero to a billi. real quick
with a business model that can sustain it

if you plan on opening bars in every major city and take on funding for that purpose that would make a bar a startup

My girlfriend works for a startup in a co-working space that has beer on tap, and a "chill space" with huge TVs and Playstations.

Seems very wasteful seeing as the businesses there are yet to break even.

which city?

Lol amazon still doesn't break even. Bezos prides himself on spending all operating profits on growth, even at this stage. I don't think amazon has ever had more than one consecutive quarter of gaap income.

My employer, technically.

The company was very much profitable in its first year (currently in its 2nd-3rd), but it's not a software product driven company per se. Rather, it's a marketing / services / ecommerce "middleman" backed by a team of in-house software developers (including myself).

Most of the staff pretty much jumped ship from a larger company that overmanaged them (and was exceptionally shitty at doing so) and about to liquidate the division But the team's quite seasoned with respect to operating autonomously, so they hit the ground running and have done very well thus far.

Who cares. Stupid people borrow money they can't repay.

What about the education bubble? Or the banking monopolies?

>What about the education bubble?
Who cares. Stupid people borrow money they can't repay. :^)

Not always. Sometimes if the business is earning enough money the owner decides its too much effort to expand. My Dad runs a Tarmacing company with just 5 people and they make enough money for themselves. It would be a pain in the arse to make it any bigger and it probably kill his company because big business is a completely different ball game.

When you have a small business, the way the business operates is with a flat hierarchy. Running a company like that requires a completely different skill set than a big company that has a tall hierarchy. So yes, sometimes it can be advantageous not to grow.

The SEC is beginning to allow individual investments into start-up companies. If that market somehow managed to grow large enough without the bubble being popped in the first 2 days, then I could see that being an issue that would compound with liquidity drying up among PE/VC firms.

My coffee will be made by failed engineers instead of failed artists?

University is paid by tax (here at least) So there wont be a bubble crash. Plus the fact that every uni charges the same despite how good the university or course is helps this.

>Tindr
>Twitter
>Ebay
>Amazon
>erm, Veeky Forums

zero to a billi? What? Where are you getting this notion of what a start up is about from?

The whole premise of a startup is rapid growth, one man running a bar regardless of how successful it is, isn't a startup.

Another bubble will come and make another collapse.

Not necessarily

growth is only good if the growth comes while earning above your cost of capital, or earning a profit

growing quick when you're a loss-making enterprise only quickens the cash burn and your inevitable collapse. Companies can "grow" themselves to death - was pretty much the main story behind 99% of the tech bubble - the mantra became "scale or die" with no regard for whether the growth was attainable and these meme companies burned themselves into bankruptcy

>I don't think amazon has ever had more than one consecutive quarter of gaap income.

No one cares about GAAP income. People care about

1. EBITDA (adjusted)

2. Growth

>A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." The only essential thing is growth. Everything else we associate with startups follows from growth.

paulgraham.com/growth.html

>To grow rapidly, you need to make something you can sell to a big market. That's the difference between Google and a barbershop. A barbershop doesn't scale.

>For a company to grow really big, it must (a) make something lots of people want, and (b) reach and serve all those people. Barbershops are doing fine in the (a) department. Almost everyone needs their hair cut. The problem for a barbershop, as for any retail establishment, is (b).

an exception here would be the coworking space WeWork, who tripled their employees and locations in a year and a still growing (sf gets their 6th location in 2 months, nyc is a few months away from their 28th, 29th and 30th)

an exception to a place based around a physical location

which goes back to the rapid growth bar I mentioned earlier. that's a bar that would be considered a startup