Skip to Content

An End to Fast Times at Startup High?

The man behind an influential Silicon Valley incubator warns startups that the era of easy cash could be over.

Startup soothsayer Paul Graham is telling technology startups to get frugal with their cash. In the wake of the poor performance of Facebook’s IPO, new and early-stage companies may find it difficult to raise money or may be forced to do so at lower valuations, the influential co-founder of the Y Combinator startup incubator predicts. “The best solution is not to need money,” he wrote in a blog post, which was reportedly also sent in an email to his portfolio companies. 

Already, the Facebook IPO has damaged the market for more developed companies planning to go public soon. But Graham’s words hint at broader implications for the entire startup ecosystem. Silicon Valley watchers have long-debated when or if a tech bubble would pop. 

Maybe there won’t be a loud pop. But perhaps a less dramatic deflation is in the cards?

Keep Reading

Most Popular

AV2.0 autonomous vehicles adapt to unknown road conditions concept
AV2.0 autonomous vehicles adapt to unknown road conditions concept

The big new idea for making self-driving cars that can go anywhere

The mainstream approach to driverless cars is slow and difficult. These startups think going all-in on AI will get there faster.

biomass with Charm mobile unit in background
biomass with Charm mobile unit in background

Inside Charm Industrial’s big bet on corn stalks for carbon removal

The startup used plant matter and bio-oil to sequester thousands of tons of carbon. The question now is how reliable, scalable, and economical this approach will prove.

images created by Google Imagen
images created by Google Imagen

The dark secret behind those cute AI-generated animal images

Google Brain has revealed its own image-making AI, called Imagen. But don't expect to see anything that isn't wholesome.

AGI is just chatter for now concept
AGI is just chatter for now concept

The hype around DeepMind’s new AI model misses what’s actually cool about it

Some worry that the chatter about these tools is doing the whole field a disservice.

Stay connected

Illustration by Rose WongIllustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.