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The Ultra-Lean Startup and Brute Force Venture Capitalism: A Vision for the Post-COVID Venture…
- Governments worldwide injected vast sums — around $16 trillion in stimulus — to stabilize economies, causing excess liquidity to flow disproportionately into high-risk assets.
- Many faced abrupt recalibrations, cutbacks, and a scramble to extend their runway.
- As funding poured into high-risk, high-growth tech companies, valuations soared, even for firms without solid profit models.
- As inflation surged post-pandemic, central banks were forced to change course.
- Startups, faced with dwindling runway and the challenge of re-establishing value under more stringent market conditions, had no choice but to adopt cost-cutting measures.
- Startups and big tech companies like Meta and Google, increasingly turned to automation as a primary strategy to cut costs and survive.
- By automating essential yet repetitive tasks, startups can now operate with unprecedented frugality, maximizing productivity with fewer resources.
- Venture capitalists are reconsidering their strategies, a shift I describe as brute force VC.
- This environment favors entrepreneurs who use technology to navigate and capitalize on a resource-constrained world.
- Success will belong to those who adapt swiftly, harness technology effectively, and challenge entrenched norms.
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