The financial meltdown on Wall Street has started to have an effect on the West Coast tech community. Yesterday, I spoke with the ex-CFO of EQO communications, Laura Colwill. She said that last week they had to eliminate a large percentage of the full time positions at the company (including hers) to protect their declining cash position in the face of increased difficulties in raising new equity investment.
Reports from Silicon Valley indicate that some companies there are reducing anywhere from 10% to 50% of their staff based on “encouragement” from their VC backers over the last 10 days. Reports from other parts of the world indicate the same thing. I expect we are in for a period of very bleak news in the tech industry.
However, I still believe (and can quote articles from other senior people in the industry who agree) that good companies with high quality leadership and good, solid business ideas can get funded and get into business in any economic climate. We are that kind of company.
Bring it on!