I read with some interest (for professional and personal reasons) about the belt tightening of many of the VC backed companies in Silicon Valley–and elsewhere for that matter.
Professionally, I do a lot of business with these companies. I like to know how stable they are and if I am doing business with what will soon be a cadaver. Personally, I know and like a lot of the people I work with. I hate to see anyone lose their jobs, especially friends.
But sometimes I wonder if Silicon Valley is a bell weather for the rest of the country, or if this is an isolated group…check out what Sequoia told their clients:
But does this really make a difference to the rest of the world? Does an auto worker in Detroit really care about 19 people who work for Twitter? and for that matter do the 19 now former Twitter-ites care much for the 10,000 UAW members who have lost their jobs this year?
I think we can look the Valley as a microcosm for the country. And yes, it can be a bell weather-because it is the home to most of what is innovative.
But for true economic impact, I still think the thousands who are now no longer working on Wall Street will be felt negatively on Main Street.