> Spiegel also said he believes there is a tech bubble that will eventually burst.
My cynical reading of this is that Snapchat wants to grab as much of retail investors' money before consumer tech valuations implode.
My cynical reading of this is that Snapchat wants to grab as much of retail investors' money before consumer tech valuations implode.
There may be a bit of an impact in SV, but not much beyond. Same as last time.
Most tech workers don't realize this. I can work an exciting, below market startup job (infrastructure/devops), and then hop back into enterprise IT (it manager/vp engineering/senior linux admin) when the going gets tough and get paid more (ie market rate) until the next startup wave comes through.
1,000 people * $100,000 average total employment cost = $100m per year (intentionally rough math). Now shave 20% off of that. It simply isn't meaningful to what they're doing; they raised $685 million in the last six months, saving $20 or $30 million per year doesn't matter.
For Snapchat, for which money is no issue relatively speaking, it's better to have this super rich funding environment. They can out-raise, and out-spend their competition when it comes to talent (and for those they can't do that to, like Google, it's moot anyway).