The tech industry's period of abundant capital and unconstrained growth has ended. Companies are now prioritizing profitability over growth at all costs, leading to widespread layoffs, hiring freezes, and a shift in focus towards efficiency. This change is driven by macroeconomic factors like rising interest rates and inflation, as well as a correction after years of unsustainable valuations and practices. While this signifies a more challenging environment, particularly for startups reliant on venture capital, it also marks a return to fundamentals and a focus on building sustainable businesses with strong unit economics. The author suggests this new era favors experienced operators and companies building essential products, while speculative ventures will struggle.
The original poster is seeking venture capital funds that prioritize ethical considerations alongside financial returns. They are specifically interested in funds that actively avoid investing in companies contributing to societal harms like environmental damage, exploitation, or addiction. They're looking for recommendations of VCs with a demonstrably strong commitment to ethical investing, potentially including impact investing funds or those with publicly stated ethical guidelines.
The Hacker News comments on "Ask HN: Ethical VC Funds?" express skepticism about the existence of truly "ethical" VCs. Many commenters argue that the fundamental nature of venture capital, which seeks maximum returns, is inherently at odds with ethical considerations. Some suggest that impact investing might be a closer fit for the OP's goals, while others point out the difficulty of defining "ethical" in a universally accepted way. Several commenters mention specific funds or strategies that incorporate ESG (Environmental, Social, and Governance) factors, but acknowledge that these are often more about risk mitigation and public image than genuine ethical concerns. A few commenters offer more cynical takes, suggesting that "ethical VC" is primarily a marketing tactic. Overall, the consensus leans towards pragmatism, with many suggesting the OP focus on finding VCs whose values align with their own, rather than searching for a mythical perfectly ethical fund.
Summary of Comments ( 128 )
https://news.ycombinator.com/item?id=43378321
HN users largely agree with the premise that the "good times" of easy VC money and hypergrowth are over in the tech industry. Several commenters point to specific examples of companies rescinding offers, implementing hiring freezes, and laying off employees as evidence. Some discuss the cyclical nature of the tech industry and predict a return to a focus on fundamentals, profitability, and sustainable growth. A few express skepticism, arguing that while some froth may be gone, truly innovative companies will continue to thrive. Several also discuss the impact on employee compensation and expectations, suggesting a shift away from inflated salaries and perks. A common thread is the idea that this correction is a healthy and necessary adjustment after a period of excess.
The Hacker News post titled "The good times in tech are over" (linking to seangoedecke.com/good-times-are-over/) generated a significant number of comments, many of which discussed the cyclical nature of the tech industry, the changing economic landscape, and the implications for both employers and employees.
Several commenters agreed with the premise of the linked article, pointing to the recent wave of layoffs, hiring freezes, and reduced valuations as evidence of a downturn. They discussed how the era of easy money and rapid growth fueled by low interest rates is ending, leading to a correction in the market. Some mentioned that this is a healthy and expected part of the economic cycle, while others expressed concern about the potential for a deeper recession.
A recurring theme was the shift in power dynamics between employers and employees. Some commenters argued that the previously employee-friendly market, characterized by high salaries, generous perks, and abundant job opportunities, is now tilting back in favor of employers. This shift, they suggested, might lead to a more competitive job market, potentially impacting compensation and benefits.
Several commenters shared personal anecdotes about their experiences in the current market, including stories of layoffs, rescinded job offers, and difficulty finding new roles. These anecdotes provided real-world examples of the changing dynamics discussed in other comments.
Some commenters challenged the article's premise, arguing that the "good times" were never universally experienced, especially for those outside of specific tech hubs or roles. They pointed out that many tech workers have always faced precarious employment conditions and that the current downturn might disproportionately impact certain segments of the industry.
The discussion also touched on the potential long-term consequences of the current downturn, including the impact on innovation, startup funding, and the overall tech landscape. Some predicted a period of consolidation, with larger companies acquiring smaller ones and a greater focus on profitability over growth.
Several commenters offered advice for navigating the changing market, including focusing on acquiring in-demand skills, building a strong network, and being prepared for potential job changes. They also emphasized the importance of financial prudence and diversifying income streams.
Finally, some commenters expressed skepticism about the ability to accurately predict the future of the tech industry, highlighting the inherent uncertainty and volatility of the market. They suggested that while the current situation may be challenging, it also presents opportunities for those who are adaptable and resilient.