Cliff Obrecht, co-founder of Australia’s most valuable and high-profile start-up, used this interview with Masthead last week to explain his I reassured my staff about the company’s future and financial situation. The journalist, obsessed with his company’s plummeting valuation, “needs to write more interesting stories,” he said.
Obrecht isn’t the only tech sector member who feels this way. A decade-long start-up boom is coming to an abrupt end as tough market conditions hit home. “2021 will see a lot of media buzz around start-ups, and 2022 will be clouded,” Paul Bassat, one of the country’s biggest start-up investors, recently said on Twitter. said. “Last year it wasn’t so good, but this year it’s definitely not so bad.”
An endlessly glowing magazine cover, an article praising a small capital raise, and a photo shoot of the two founders against a bare brick wall attest to earlier complaints from Bassat. But while some have complained about it personally, much of the startup scene has grown accustomed to uncritical coverage in the media as the normal norm. The industry is struggling to adjust.
Aside from some compelling investor letters, venture capital firms have every incentive to act like the recession is someone else’s problem. capital was a commodityIn order to convince startups to take their cash, investors had to show they were true believers, not just bags of money. Consider, for example, Blackbird Ventures, perhaps Australia’s most famous venture company. Instead of a typical website, visitors to its online properties must zoom in through a flame-colored bird’s eye and leap through a series of kaleidoscope-like shapes to “enter the world of Blackbird.” Find out that the fund is backing a very big ambition.
In America, this kind of self-mythologization has spawned an army of critical experts. increase. Most famously, his New York University professor Scott Galloway came to prominence after he lashed out at co-working company WeWork’s claims.raise awareness of the world”.
In some cases, the relationship between US technology and media has become very bitter.After a series of talks about harassment, corporate mismanagement and his allegations of harassment sex lifeBillionaire Elon Musk tweeted, “Media is a click-seeking machine disguised as a truth-seeking machine.” Another startup founder, Ryan Breslow, issued a series of tweets that obliquely alluded to some form of collusion between the two companies. new york times his company critical storyWell-known venture capitalists routinely attack the media. Of course, there is a history of corporate tension between the media and tech industries. Sites like Facebook, Google, and eBay once spent billions of dollars printing ads. But the American experience points to a deeper current belief. So technology and startups are fundamentally good, and therefore coverage of adverse truths is fundamentally bad.
This worldview is still rare in Australia, where tales of admiration still prevail of small start-ups raising cash, or wanting to. Basat and Obrecht’s recommendation is instead to “ignore the noise” of the broader economy, which is in some ways good advice. Startups are not day traders trying to buy low and sell high. It doesn’t matter if a company has to endure a recession along the way when it has the potential to overturn a huge industry and generate billions in revenue over the long term. Bassat’s logic is that Canva shouldn’t focus on them because there’s nothing you can do to change them. But it doesn’t matter. What matters is how companies respond to the new situation. Are your marketing costs going up or down? Too many staff? Canva is a profitable company with $1 billion in the bank and he’s growing 70% in annual revenue. About the recent multi-billion dollar blockbuster Proving the rule against evaluation as “noise” is the exception.
An uncomfortable reality is finally starting to emerge in Australia’s tech sector
Source link An uncomfortable reality is finally starting to emerge in Australia’s tech sector