Startup’s Biggest Threats: Bubble Bursts, Tech Winter, and VC Zombie

Uzone.id — In the startup universe, not everything is smooth sailing. Startups are promising, yet it’s one of the most fragile businesses–at least for now. No matter how big and popular your startup is, there are always some big, scary obstacles that can take the company down a cliff.

When you’re talking about the obstacles–or let say enemies for startups, we’re talking about Bubble Bursts, Tech Winter, and VS Zombies. 

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If you’re planning on launching your own startup or already running one, it’s good to know what you’re against. By knowing them, at least you’ll be able to prepare yourself and your team.

It’s chilling but freezing your growth: Tech Winter

All of us know that the pandemic era was difficult, even until the post-pandemic, we’re still facing some challenges, like“tech winter.” This term is characterized by layoffs, hiring freezes, and a decline of penanammodal funding in technology and startup companies.

You must be familiar with this phenomenon. It’s when the entire tech industry hits a rough era, and things freeze. It’s when investment becomes harder to find, growth slows down, and startups have to fight harder to survive.

This usually happens when the economy isn’t doing good. Even big tech companies are affected by this storm. They’re cutting back and doing whatever they should do to stay alive. This era makes life tough for startups, especially when they’re looking for investors or trying to scale up.

During tech winters, surviving is winning. Don’t worry about being flashy—focus on staying alive. Cut the unnecessary costs, make sure your product is something people need, and stretch your money as far as possible.

If you’re in a tech winter, tighten your belt. Make sure your product or service is essential, and keep things lean until the market warms up again.

When the hype explodes: Bubble Burst

Think of the word “bubble” like a big soap bubble that keeps growing and growing until it finally pops, that’s also happening in the startup universe.

A bubble burst happens when everyone’s hyping up companies, pouring tons of money into them, and making them worth way more than they should be. But eventually, reality hits, and the whole thing collapses.

Basically, when people are throwing money at every shiny new startup, things go south fast when they realize those companies don’t have actual value.

Once the bubble bursts, a lot of startups end up with nothing because they’ve been riding the hype train instead of focusing on building something real. They might have raised millions, but with no actual product or revenue, they’re toast when the money runs out.

What can you do? Don’t get caught up in just trying to become the next billion-dollar company. Focus on creating something people actually want, and figure out how to make money from it. Valuations are cool, but a real business model is cooler.

When the startups become ‘The Walking Dead’: VC Zombies

Now let’s move to another startup enemy, it’s called VC Zombies. 

VC Zombies are a trap. This title applies to a startup that looks successful because they’ve raised a bunch of money, but behind the scenes, they’re just burning through cash and aren’t profitable. 

These are startups that have raised a ton of venture capital (VC) money but aren’t really doing anything with it. They’re not growing fast enough to attract new investment, but they haven’t totally failed either. They’re basically in startup limbo—alive, but not really.

VC Zombies happen when startups aren’t really viable. They keep raising money, but eventually, they hit a wall.

Don’t get too caught up in fundraising as the ultimate goal. Sure, raising money is important, but it’s just a tool to help you grow your business. The real win? Building a startup that can stand on its own and doesn’t need constant cash infusions just to stay alive.

Then, How to Beat These Startup Enemies?

The startup world can be brutal. Bubble Bursts, Tech Winter, and VC Zombies are some of the biggest threats you’ll face. The good news? You can avoid these pitfalls if you’re smart about it.

You–as a founder should stay real, just focus on building something that people actually need, not just on getting big investments. During tough times like a tech winter, keep costs down and make sure your product is essential.

Last and the most important thing is, avoid zombie land! Do not depend too much on raising money. Build a sustainable business that can grow and keuntungan on its own.