What the hell is happening in the Tech Industry?
Massive Layoffs, all time low venture capital investment, debate whether it is a crash or not… why is it happening and what’s the endgame?
Disclaimer: this article makes a huge generalization of an industry that is vastly diverse. For the purpose of objectiveness, more specific challenges faced by tech companies such as growing competition inside named segments, won’t be accounted for. Feel free to complement and share your views on the comments.
According to Layoffs.fyi, at the time I’m writing this piece, almost 120.000 people have been fired from startups all over the world since March 2020. More than 700 startups on all levels of investment rounds have discharged from 1% up to 100% of its workforce. “the tech market is crashing”, some are saying.
Venture Capital investment has dropped 19% QoQ on the first four months of 2022, an unprecedented fall since 2018. Nasdaq (USA tech stock exchange) has melted more than 27% since January 2022. “the tech market is crashing”, some are sure.
The situation is dire, but nothing is crashing just yet. Fasten your seat-belt and stick with me because we’re about to get way more technical than usual…
I’ve made a follow-up article to…
