Arthur Freydin’s Blog

Online marketing, gadgets, business, and thoughts.

There has been quite a bit of chatter going on about the market meltdown and its effect on the startups of Silicon Valley. Funding will be increasingly hard to come by, especially from venture capitalists that are affected by the public market such as Sequoia Capital (they invested in Google, Apple, etc.). A number of venture capital firms have released presentations and emails of doom to their portfolio companies urging them to buckle down and control burn rates. They also advise to sell if the opportunity presents itself, even if it’s at a loss. The outlook has been grim, especially to those startups with light, or no revenue streams whatsoever.

It’s scary out there, especially to anyone that has been considering launching their own startup. I hold a different view on things. I think that this is going to be a time that will weed out nonsense and promote actual companies that actually add value and generate revenue. Anyone can launch a social network, but it takes a certain kind of entrepreneur to actually launch successfully and fulfill an actual need. Fulfilling a need is where it’s at for a while – it’s no longer enough to present a service that a user may just want. This paves the way for startups that make our everyday tasks easier, more productive, and more efficient. Those are the startups to keep an eye on.

Now is the time for great ideas to flourish while all the dumb ventures get flushed down the drain. Who needs social networks when all they do is weaken your productivity? Now is the time for companies that you simply can’t do without.