Updated: Aug 15, 2022
2022 so far has been brutal for most tech stocks, with many small cap stocks seeing their valuation slashed by as much as 80%-90%. There are many legit companies out there that went backwards in time and are now worth less than what they were worth a few years ago when their top line revenues and earnings were a fraction of what they are now.
So it’s no surprise that everyone, and I mean everyone, in startup land is extremely concerned (yes, investors and LPs as well). The mode is a survival one, and the sole focus is on creating runway and ensuring that companies have a solid plan to weather this storm.
Yet, I don’t subscribe to the doom and gloom. I consider the current state as “a cleanup”. We’ve created a mess that didn’t make a lot of sense. Now comes the cleanup time.