In an interesting article by Hootsuite’s Ryan Holmes, the CEO speaks about how the tech world is seeing a move away from decadence & spending, and towards more financial responsibility.
This is something Hootsuite has decided to focus on recently, choosing to change from being a high-growth and high cash-burning operation to focusing on smaller growth & having a positive cash flow.
As Holmes says: “Across the tech industry, the trend away from decadence and toward greater financial responsibility is more widespread than ever. Money-conscious is the new cool. Economical and efficient is in. And the real unicorns are actually profitable.”
The CEO says this is in part because the investment landscape has changed, with analysts and investors being more critical of unicorns and fast-growing companies, and VCs tightening their purse strings.
“The paper unicorns–companies that never should have been part of the club–are being devalued left and right. Meanwhile the true unicorns are restructuring to reflect the shifting climate. Making money matters, always has and always will, and it’s reassuring to see that rationality return to the market.”
Read the excellent article on LinkedIn here.