(2008-09-30) Startup Depression

The big question for us Internet junkies is: what's the impact of the Credit Crisis 2008 going to be on the Start Up world?

Jason Calacanis wrote a "Startup Depression" piece with his perspective. He identifies 10 specific things you can do.

Fred Wilson believes that the pre-VC companies will be hurt most, because the VC-s won't be doing as many new investments. If, on the other hand, you are just starting a company, or have angels backing you, or are backed by first time venture firms that are not funded by traditional sources, then I think you've got a bigger problem on your hands. It's not an impossible problem to solve, but you have to start thinking about how you are going to get where you want to go without venture funding. In the comments he also notes It won't go away but it will be harder to obtain. Great people and great ideas will still get funded. The hurdles will go up. I suspect it will be at least a couple years for that dynamic to change. He also notes that he thinks the M And A market will continue, this time led by more traditional companies using the dowturn in valuations to get moving on their internet opportunities.

Rafe Needleman gives some warnings.

Alan Patrick says the main risk is for companies with Free Stuff (Advertising-driven, or just still seeking Revenue Model).

Howard Lindzon thinks you should launch your Start Up now, but not quit your DayJob. He thinks Jason is panicking because he started a crummy Advertising-based business (MaHalo). Stowe Boyd thinks that Green-Tech is the way to go.