A year of writedowns and down-rounds has prompted many startups to sharpen their business focus.
Startups in the tech sector have defied expectations of a “great reckoning.”
Citing Evernote, Zirx, and Bannerman as examples, The New York Times explains how tech startups have largely responded to alarm bells set off by investors, with the following results:
- Many companies have narrowed their focus to the most profitable customers.
- More new enterprises are leveraging artificial intelligence, robotics and virtual reality, “creating potential areas of growth for Silicon Valley technologists to build on next.”
- Elimination of some employee perks. For example, Evernote ditched free housekeeping services.
“The startup world did heed the warnings,” Max Levchin, chief executive of lending startup Affirm, told the NYT. Levchin was a co-founder of PayPal.