Tough times ahead

Here is the way it happens Fed in USA will increase interest rates to tame inflation. VCs will have to generate greater returns, because USA bonds give better return than most of the bets they’re going to make. Half of the portfolio companies of normie VCs will go under. All the limited partners who put in the money into VCs pocket to invest, will start drying up. They'll question every investment the VC makes, so ofc they will become risk averse. So VCs will force their companies to become profitable, cut down cost in every way possible. Startups will end up firing 20-30 per of the workforce, its do or die for them. Now, what can you do? 1/ have buffer amount in fixed deposits (5-6 mos of your expenses), amount you can liquidate easily 2/ now is the time to work hard and prove your worth, be the top performer in team. For the first time in 5y, hiring and retaining equation is in employers favor 3/ cut down on buying any assets which are not going to appreciate (esp the ones you’re buying on Emi) 4/ upskill yourself 5/ if possible get a pvt healthcare insurance for you and your loved ones, don't depend on corporate insurance. Remember, USA’s recession is world’s recession. Only question is how the cards are going to fall, together all at once or one by one. Brace up, next 9 mos are going to be the most difficult times you’ve seen in tech in last 2 decades. Godspeed. ps: sector i would stay away from india perspective- edtech for now

Talked to the son of my Dad's friend recently. Brilliant kid has a good GPA from IIIT-H + 2 research internships and 1 summer internship at good companies. He still can't find a "good" company to get into. (Side Note: "good" implies a high paying job relative to last couple of years) Apparently, most of his friends in other colleges are in the same boat. Massive pay correction has happened. The undergoing rationale is that companies hired Class of 2022 with no restraint because the demand was really strong during their placement season in 2021. This appears to be directly correlated with quantitative easing in the US and a low interest rate environment that was conducive to fundraising for several Series A+ startups. By the time Class of 2022 entered the market, everything changed and they felt some short term change. However, Class of 2023 is having a much tougher time. They are shoved into the job market in a time where demand is low and they are competing with kids who graduated last year. Ongoing consensus appears to be that a huge chunk of their batchmates are going to get their Masters abroad. Their hope is that by the time they graduate out of grad school, the economy will pick up and demand will be strong while they're poised to take advantage of that with bump up credentials. Unfortunately, this also implies that many of them will end up in the CPT-OPT-H1B-Green Card hell. This is really a tough spot to be in.

What are your predictions for 2023?

When the market will stable , when this layoff period will go away ? Any thought 🤔

The economy went down? Yes. Did it affect all kinds of companies? Yes Did the banks fire any one? No Did the Railways fire anyone? No Did the media agencies fire anyone? No Did Large Tech companies and IT fire people? Absolutely yes Tech is the most ruthless-stupid sector that is so flimsy and short sighted that it doesn't care jack-shit about employees Tech companies will pay employees large salaries in a heartbeat, they'll hire 1000s of them and then fire 100s of them in a heartbeat destroying careers. Sigh!

As we bid farewell to the challenges of the past, let's delve into why 2024 is poised to be a game-changer for the Indian Startups! 🚀 In 2020, the world weathered the storm of COVID, followed by unprecedented quantitative easing. We then saw that in 2021 the bull run came soaring. Investors, fueled by the appetite for riskier assets led to a funding boom for startups as salaries soared. Fast forward to 2022, and the music is about to stop. The realization that the Fed would hike rates to curb inflation means that funding is about to dry up as big money will be invested away into debt/T-Bills. Though demand remained robust, the stock market felt the impact as JPow raised the interest rates. Late 2022 and 2023 saw the tech landscape experiencing layoffs, and startups facing significant headwinds. It’s a wonder if anyone raised this year. But here's the twist—2024 looks brighter. The stock markets have rebounded to all-time highs, signaling that things may be on the rise. Despite geopolitical tensions in Ukraine and Iraq, the macro outlook for India shines bright. For Indian Startups? VC Funding is still here to stay. So keep your heads down and keep building. From what I am hearing, it is set to make a roaring comeback. There is now significant rationality in the funding ecosystem leading to realistic valuations. However, this revival will come with a plot twist. Newer companies, fueled by fresh funding, are set to rise, while most of the lofty valuations of those who raised in 2021 are about to crash and burn. So buckle up folks. Let’s see where it takes us. What do you think? 🤔

Is the tech. industry declining? What should the newcomers know before opting for this particular career path? Is there anything to fear about? A hype about the tech. jobs in society and especially in families of students choosing their career has made me ask this question. I hope a clear discussion with people who actually know about it will help.

Today, the markets have been bleeding across USA, Japan, India due to number of reasons contributing to it. War between iran- Israel, unemployment rate in USA going up, increase in interest rates in Japan which led to the worst decline of their stock markets in history. We were thinking that since now openings are coming up, situation could improve. Will the situation get worse from here in the upcoming days or is it too early to say?