Mobile app startups are failing like it’s 1999 | @andrewchen

Mobile app startups are failing like it’s 1999 | @andrewchen.

Here is an interesting article from Andrew Chen’s blog in which he draws parallels between the current mobile app start-up boom (and bust) and the bursting of the tech bubble in 1999.

Chen doesn’t offer up any easy answers to companies seeking to avoid the boom-bust cycle, but he does make a good point: many companies are burning over 1/2 of the their available cash before even launching v1 of their product. This leaves companies with a VERY short runway to get their product off the ground.

As always, keeping burn-rates low and hoarding cash as much as possible are keys to maintaining enough longevity to give a product time to build market-share and, if necessary, to go back and tweak the product if v1 is not “all that”.

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