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"Once Silicon Valley’s highest-flying darlings, companies from WeWork to UBER have collectively lost about $100 billion in value this year, prompting some startup executives to talk up profitability over growth..." https://wsj.com/articles/silicon-valley-adjusts-to-new-reality-as-100-billion-evaporates-11574764205">https://wsj.com/articles/... https://twitter.com/ritholtz/status/1199657258751160322">https://twitter.com/ritholtz/...
One thing we don& #39;t talk about is that the $100 billion was "lost" to the investor, but it was spent on salaries, perks, rent & more. As a result, parts of the economy received a $ injection that is not reliable in the future. I would read that investigative report. For example:
Start with how much of the $100 billion was money "taken off the table" by the founders. We know that in the case of WeWork, $2 billion went to Neumann. What about his top tier? Add it up. And then don& #39;t ever let that happen again.
Then look at salaries that were a direct result of the $100 billion. The trickle-down effects include increases in market rates for a particular job to local home values. When the $100 billion VC investment collapses, individuals and their communities also lose.
I& #39;m also somewhat obsessed with understanding how many startups are only alive due to 3 things: 1) VC money needs to be spent, 2) historically interest rates, 3) the existence of "unicorns" that buy the services. On a daily basis I get dozens of pitch emails.
But the biggest losers? Those who don& #39;t get capital. What& #39;s the opportunity cost of not investing a more inclusive set of founders? Or in companies that create good (e.g., steady w/ benefits, trajectory, equal opportunity) jobs?
Instead of publishing lists about the fastest growing companies or those with the "coolest" perks, I want to see @Inc @FastCompany @Forbes write about the companies with staying power. Those that have achieved profit and invest in people. It& #39;s possible.
All of this is not to say that investment or growth are bad; it just needs to be more intentional. Here are a few pieces I wrote on the subject: http://www.humancompanyplaybook.com/manifesto/ ">https://www.humancompanyplaybook.com/manifesto... & #ddb70d06aa47">https://www.forbes.com/sites/break-the-future/2018/02/12/how-you-can-close-the-wealth-gap-that-women-face/ #ddb70d06aa47">https://www.forbes.com/sites/bre...
