Some in Silicon Valley are optimistic this dark period for the economy could spawn a generation of startups whose founders finally got the nudge they needed to make the leap, Axios' Kia Kokalitcheva reports from S.F.
- Why it matters: During past downturns, recessions have often triggered startup baby booms.
- After the dotcom bust of the early 2000s, a new wave of small companies emerged to build "Web 2.0." And many of today's industry leaders got started during the Great Recession.
Look for COVID startups to fall into two buckets:
- Ideas that were already being considered, and now there's a pause for them to take shape.
- Ideas inspired by the current crisis — work-from-home innovations, and ways to do things online that were traditionally offline.
What's happening: Layoffs are swelling at startups, larger pre-IPO tech companies, and public firms like Uber and Lyft.
- Some are choosing to take new jobs, but many likely have the financial resources to take a step back and try something on their own.
Y Combinator, the famed startup accelerator program, is seeing 15-20% more applicants for its summer program, admissions chief Dalton Caldwell tells Axios.
- "For the first time in a decade, product people and engineers are open to looking at new jobs," Cleo Capital managing partner Sarah Kunst tells Axios.
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