I disagree that it's a valid attack. They aren't telling people to stop taking any risks-- they are telling people to prepare for a down market, which DOES affect the trajectory of a startup (even if they are on the right track). Pasting bits from my comment on SvN:
In a happier financial times, customers are flush and buying. Buyer confidence is high. Growth is easier, your sales/marketing spend can be a touch lower, etc.
In happier financial times, VC-backed startups can count on more investment if they are generally moving in the right direction. Whether you think VC-backed startups are stupid or not, that’s how the game they are playing works. Funding in a down market is scarce and terms are rougher.
In happier financial times, VC-backed startups have a better shot at an exit (IPO, M&A). Again, whether you think it’s stupid or not, that’s the game.
Your Google/Pets.com argument is kinda strawmanny itself. Pets.com died because they didn't create much value. There were times in Google's growth that they would've DIED if they couldn't get funding. Growth costs money and revenue can be realized months or years after smart spending. If you don't have a big war chest and capital is scarce (and expensive) it makes sense to grow a touch slower.
In a happier financial times, customers are flush and buying. Buyer confidence is high. Growth is easier, your sales/marketing spend can be a touch lower, etc.
In happier financial times, VC-backed startups can count on more investment if they are generally moving in the right direction. Whether you think VC-backed startups are stupid or not, that’s how the game they are playing works. Funding in a down market is scarce and terms are rougher.
In happier financial times, VC-backed startups have a better shot at an exit (IPO, M&A). Again, whether you think it’s stupid or not, that’s the game.
Your Google/Pets.com argument is kinda strawmanny itself. Pets.com died because they didn't create much value. There were times in Google's growth that they would've DIED if they couldn't get funding. Growth costs money and revenue can be realized months or years after smart spending. If you don't have a big war chest and capital is scarce (and expensive) it makes sense to grow a touch slower.