Tayyab - d/acc
@tayyab
We need to find founders who built businesses during the 2001 crash and learn everything from them! Is Ben Horowitz on FC? Lol
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mr.y
@yalamanchi.eth
No but @pmarca is! Would love to hear about the times back then? If not can someone recommend a dotcom bubble book?
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Marc Andreessen
@pmarca
What would you like to know?
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@
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Marc Andreessen
@pmarca
(1) Important pattern #1: The 2000 crash was like dominos falling down from sector to sector within tech. Each sector in turn got whacked by the collapse of the one behind it until they were all wrecked, at least temporarily. None were spared.
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Marc Andreessen
@pmarca
(2) Important pattern #2: If you look at the NASDAQ chart from 2000 to 2003, you'll see there were ~5 "false dawns" where it looked like recovery was happening, until another stage of the collapse hit.
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Marc Andreessen
@pmarca
(3) Important pattern #3: ~Every tech CEO knew he should do a single deep layoff to prevent ongoing morale damage from subsequent layoffs. He then did an initial ~10% cut, and then ~6 more 10% cuts by the time the carnage was over.
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Marc Andreessen
@pmarca
(4) Important pattern #4: The bottom did not come in until the demoralization was so comprehensive that the tech crash wasn't even generating news headlines anymore, it was just sad and depressing. Also, until the hotshot public stock managers of the era were fired or retired.
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Marc Andreessen
@pmarca
(5) Important pattern #5: During the recovery, every single actual good thing that happened was painted as "TECH BUBBLE 2.0" by a histrionic press and commentator class. This continued for a full decade.
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lizard
@lizard
This was a great read. Thanks for sharing some insight!
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