It's Not a Good Time to Start a Business

Mish

The Bloomberg Startup Barometer, a measure of business environment health, is in a steep plunge.

The Bloomberg Startups Barometer is a weekly indicator that tracks the overall health of the business environment for private technology companies based in the U.S.

The index peaked at 1545.32 on June 24, 2019.

On February 10, 2020 it fell to 833.74.

The Bloomberg Startups Index is down 25.45% from a year ago, but it's down a massive 46.0% in just under 7 months.

This suggests it's not a good time to start a technology business.

I propose it's not a good time to be starting any business.

Mike "Mish" Shedlock

Comments (18)
wootendw
wootendw

On the Bloomberg startup 'barometer':

"Our index incorporates both the money flowing into VC-backed startups, as well as the exits that are making money for investors. To smooth out some of the volatility, we calculated the average value for the last 12 weeks."

No. 1-11
abend237-04
abend237-04

I'd like to see the source data and how they use it. The WeWork blow up alone might explain much of the moonshot excursion and implosion in the past year.

lamlawindy
lamlawindy

Respectfully, I call BS, Mish. The VAST majority of businesses don't get VC money to start. They either use savings or family capital.

Six000mileyear
Six000mileyear

When I scour the job boards, I see almost no openings for small (<200 people) tech companies. Most temp and perm job openings are with the military-industrial-complex. The better paying jobs within the MIC require security clearance.

RonJ
RonJ

"Last month I made over $9,700 part time on the internet and bought a Ferrari..."

/sarc tag

magoomba
magoomba

Obviously you want to avoid all issues that have any involvement with production, industry, materials, selling, labor or work, transportation and delivery, retailing, consumer demand, or anything that involves effort, jobs, physical goods, or profit.
These types of businesses are no longer viable, actually doomed in today's modern economy.
Stick only to tried and true monetary shifters and movers that have no messy, productive follies of any kind, but stay safely adhered to the gushing portals of the central banks. You will do fine.

magoomba
magoomba

Maybe good chili or pizza, but that takes talent.

Maximus_Minimus
Maximus_Minimus

Probably figured that ten useless, personal data collecting social media companies have it covered.

On another note, is there a chance to implement a "go to comments" button, so one doesn't have to scroll through the same post every time?

thimk
thimk

wow did we run out of data harvesting "APS" to create? /s

TimeToTest
TimeToTest

This loose environment has created mega monopolies.

Just look at how many Fortune 500 companies Japan has produced in the last 20 years to see where this goes.

sangell
sangell

Unless you are contractor or tradesman what business can you possibly open and not get crushed by a large corporation. Coffee shop? Oops Starbucks or Juan Valdez will get the best locations and put you out of business. There used to be small grocers but unless you are willing to put your life at risk and open in a 'food desert' you have 7/11 and other corporate goliaths operating in this sector too. Food Truck and beauty salon seem to be about the only niche big companies haven't yet taken over.


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