The discussion on “How to save money running a startup”

On Friday the CEO of startup Mahalo.com (and former GM at Netscape) wrote a blog that caused a lot of backlash in the US tech scene and found its culmination with Techcrunch founder Michael Arrington taking a shot at the topic too.

First of all, I must say that this discussion is a bit amusing here in old Europe. Guys, I am glad that you got so excited about the topic and now really seem to understand that VC money (even if plentiful still in the US) is not there to blow on big title hires, designer furniture or other perks. Having also lived in that Silicon Valley dream world from 1997 to 2001, I know that group of people who got together (I think on Tuesday’s ) discussing how they could find other cool startup idea buddies that got 5-10 million USD funding, all having more or less the same business model and all wasting their money with the same TV commercials to get their B2C online store up and running.

We all know that there was a market clearance happening, and a healthy one, I must say. The interesting thing is that there are still some guys out there that survived it somehow and are even now thinking that the only reason why they failed at the time was that their ideas were too early and NOW is once again the time to build the 20th or so Web 2.0 company in the exact same space - in which most IMHO (as we will soon see, too) will bite the dust.

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