Everyone in my social circle was in a terrific mood yesterday. A small company that was widely supported by angels in my ecosystem was acquired by a larger startup that we all like. Happy investors that we were, Alex and I read the cap table over dinner and celebrated each co-investor that we liked.
It was a jubilant moment across my group chats in a darker wider climate for startups. The federal reserve’s inflation fight has meant tighter dollars. And that means less funding for early stage companies at lower valuations.
The focus has been good for the industry. A reminder that we can’t spend our way to innovation. We’ve relied on bigger companies, weaker talent, and unsustainable growth policies while the cash spigot was on.
I enjoyed the win. I’m happy for the founder and the team who will be going to such a great company. I’m happy a lot of investors got a win. But I know that the good mood will have to sustain us through some rough patches. So it’s good we are all banding together and the wins are shared.