Newsweek - National News, World News, Health, Technology, Entertainment and more... | Newsweek.com

Authors

Christopher Dickey

Rana Foroohar

Arlene Getz

Daniel Gross

Stefan Theil

Categories




Links

Featured Postings

Live Talk

1:27 PM, January 20, 2008 | Comments (0)
Every year, hundreds of the world's business and political leaders gather in the Swiss ski resort of Davos for the annual meeting of the World Economic Forum. It's an exclusive, invitation-only gathering that tries to shape the global agenda during five...

Davos: The Agenda

4:25 PM, January 18, 2008 | Comments (0)

Archives

See All from January
Previous
January 2008
Next
Sun Mon Tue Wed Thu Fri Sat
  12345
6789101112
13141516171819
20212223242526
2728293031  
       

FEB. 4, 2008 ISSUE

• The U.S. Economy Faces the Guillotine

ISSUES 2008

• The Fearful Superpower
• The Crisis In The West
• An Arrogant Approach
• France, the Loyal Ally
• For The Global Good
• Lost In Translation
• More from Issues 2008

Full Post
Posted Wednesday, January 23, 2008 12:29 PM

The Upside of a Downturn

Rana Foroohar
Tech geeks are some of the only upbeat types this year at Davos. Sure, tech stocks are tanking and corporate R and D budgets are shrinking, but that's the best time to start a new business -- at least according to some of the entrepreneurs and VCs at a technology cocktail reception held this afternoon in Davos. One high profile venture capitalist noted that many of today's biggest tech businesses, like Microsoft and Oracle, were started in a downturn. Why? "It's easier to find people because they are getting laid off elsewhere," says Tech Pioneer Alexander Straub, founder of mobile business Pixsta. "There's less money around, but also less pressure. Businesses can grow and develop." Even better, says another VC, is that investors don't have to pay the huge multiples they do in good times. Its all either honest optimism, or a desperate attempt to counteract the huge sucking sound emanating from the rest of the conference hall.



Advertisement
  • Email This Post
  • Print This Post
Permalink: http://blog.newsweek.com/blogs/davosplayers/archive/2008/01/23/the-upside-of-a-downturn.aspx
You must be a registered user to comment.  Click here to register.  Already a user?  Click here to login.

Member Comments

No Comments
 
The Peek
 
 
PROJECT GREEN
Karen Breslau

Passing the 'fossil fools' in a CNG-powered car

Sponsored by
 
 
 
 
PAKISTAN
Mark Hosenball
Sponsored by
 
 
 
loadingLoading Menu