Startups spring from ashes of Big Tech purge

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A wave of would-be entrepreneurs is emerging from the ashes of the Silicon Valley purge in the second half of 2022, according to venture capitalists

While overall venture capital financing fell 33% globally to about $483 billion in 2022, early-stage funding was robust, with $37.4 billion raised in so-called angel or seed rounds, in line with the record level seen in 2021, according to data from research firm PitchBook.in November to fund startups founded by people who had been laid off from their tech jobs, touting the slogan "Funded, not Fired".

"Looking at the last economic cycle, companies like Stripe, Airbnb, Dropbox have been created in crisis."Silicon Valley investor U.S. Venture Partners and Austrian VC firm Speedinvest have meanwhile earmarked a similar amount for newly founded companies."With advances in game design, new innovations like cloud gaming, and the emergence of social networking in this sphere, gaming has really transcended into mainstream culture," said Sofia Dolfe, partner at Index Ventures.

Some investors compared the 2022 downturn to the dotcom crash of the early 2000s, when dozens of overvalued startups went bust, flooding the market with talent and helping to spark a wave of new companies such as Facebook and YouTube.

 

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Hacking. Is bad…

Perhaps Meta should change it's name to Pico ? Facebook

Let's pray that the mass firings by the big tech companies leads to many small business start up success stories. Like that the venture capital fund managers are seeing it as an opportunity.

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