Tech startups are affected by the uncertain economy. However, some companies are suffering more than other.
That was the main takeaway from our discussions on Tuesday night at an evening BBQ at Seattle’s Ballard neighborhood that was hosted by the Allen Institute of Artificial Intelligence.
We asked the startup executives the similar inquiry: On a scale of 1-10, how affected is your company by continuing economic uncertainty? 1 being the least impactful, with 10 being the most. any level, while 10 is the most severe effect.
The answers varied between -1 and 8, and were mostly based on the type of industry and the level of the company. Certain companies are cutting their staff in order to reduce costs but others see uncertainty as an opportunity for growth. However, two long-time Seattle local investors that attended the event — both of whom have experienced downturns in the past -and described the current climate that startups face as really extremely bad.
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Here’s what business owners had to say about it:
Vikram Chalana the CEO of PictoryAI PictoryAI, an Seattle company that assists marketers and creators of content create short-form videos.
The reason: “People have quit their jobs, and are looking to become entrepreneurs and independent. Being a creator sounds like an excellent possibility. Coaching or becoming a teacher is a great chance. This is the reason we have our license. Each person pays us specific amount to edit and create videos.”
Erin Green, Jason Maddocks Erin Green, Jason Maddocks, and Dave Siegfried of LOANtuitive, the Seattle company that manages a commercial real estate-related market for debt
The reason: “The biggest impact currently for us is the runway. It’s been quite dramatic. However, our business is still based on solid foundations. We’re in a sector which thrives in times of uncertain economic conditions.”
Ivan Liachko is the Director of Phase Genomics is an Seattle DNA analysis company that sells sequencing kits
The reason: “I’m in biotech. Biotech has generally performed pretty well, even in downturns. We’re a bit different. We’re backed through grants and sales; we’re not backed with VC money. We’ve been fine.”
Yifan Zhang and Adam Stelle, co-founders of Loftium the Seattle startup that allows homeowners to lease space in their homes
Why: “There’s a positive side as well as a negative. The positive side is that we’re in a housing market that is affordable. Accessibility is the main issue. We’re seeing huge demand. From a macro perspective the housing cost and the housing market. the cost for capital.”
Joe Golden the CEO of PerfectRec the Seattle company that designs and develops personal electronic recommendation engines.
The reason: “It’s a bad environment to be seeking funding. We’re self-funded. We’re hiring. We’re creating our product at present. We’re only looking for customers to go out and buying things.”
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