The financial crisis may spell doom for many start-ups. From Wired.com:
Angel investor Ron Conway (above) thinks it could be at least two years before “the storm” ends, in which case any company with fewer than 6 months worth of cash, needs to either sell out, get a bridge loan, or “prepare for an orderly shutdown.”“Don’t put your team through the agony of arriving to work one day and saying, ‘Guess what? We ran out of cash.’ You need to face reality. It’s not easy, but it’s basic,” said Conway, speaking on the panel.
I think the guys on The ZA Tech Show made agood point that the crisis could spark off an orgy of buy-outs and mergers. Many tech companies are looking very vulnerable now, with some, like Yahoo, so badly affected by stock price falls that they might want to beg Microsoft to come and buy them after all.
