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jerryking : pullbacks   5

As the Start-Up Boom Deflates, Tech Is Humbled
Feb. 24, 2020 | The New York Times | By Erin Griffith.

Layoffs. Shutdowns. Uncertainty. After a decade of prosperity, many hot young companies are facing a reckoning.
cannabis  cost-cutting  economic_downturn  investors  layoffs  pullbacks  scale_downs  skepticism  shutting_down  SoftBank  start_ups  unicorns  vc  venture_capital 
5 weeks ago by jerryking
From Diaper to Soda Makers, Big Brands Feel the Pinch of a Consumer Pullback - WSJ
By Sharon Terlep, Jennifer Maloney and Annie Gasparro
April 26, 2017

Some blamed the weak start of the year on higher gas prices, bad weather and other external factors, while other executives pointed to shifting consumer tastes. Analysts say some big brands, such as Gillette and Yoplait, are losing ground to upstarts. Overall purchases of consumer packaged goods in the U.S. declined 2.5% in unit terms in the first quarter, according to Nielsen.....consumers are cutting back purchases, aggressively seeking deals and drawing down supplies at home. At the same time, he said, a growing affinity for beards has played a big part in driving down razor sales, which contributed to a 6% organic sales decline for P&G’s grooming unit....PepsiCo, like big food rivals Kraft Heinz Co. and Nestlé, is struggling as consumers shift away from diet sodas and processed foods to fresher and healthier options. It has launched new products, such as a premium bottled water brand, to adjust to the shift.....For food and nonfood staples, big brands are struggling more than the overall industry. The 20 largest consumer packaged goods companies last year had flat sales while smaller ones posted sales growth of 2.4%, according to Nielsen.

Wal-Mart Stores Inc., meantime, has been reducing inventories and slashing prices as it fights to compete with Amazon.com Inc. and European discounters moving into the U.S. Those cuts are eating into its own profit and, in turn, leading the world’s biggest retailer to put pressure on its vendors.........The dynamics are driving tough choices for companies as they are forced to decide between reducing prices and ceding market share. PepsiCo and Coca-Cola Co. have been shrinking packages and raising prices.
Amazon  Big_Food  brands  Coca-Cola  CPG  Fortune_500  Gillette  hard_choices  healthy_lifestyles  Kraft_Heinz  large_companies  Nestlé  P&G  PepsiCo  pullbacks  price-cutting  price_hikes  shifting_tastes  supply_chain_squeeze  upstarts  volatility  Wal-Mart  Yoplait 
april 2017 by jerryking
Yes, It's a Tech Bubble. Here's What You Need to Know
SEPTEMBER 2015 ISSUE | | Inc.com | BY JEFF BERCOVICI.

"Investors change priorities. Soon, they may be telling you, 'We want to see profitability at the expense of growth.' So you need to think about the levers you can pull to make that happen." (JCK- How does redirect from a growth mindset and plans to one of profitability?--Scott Kupor)

First, there will be some upside. Sky-high home and office rents in certain cities and neighborhoods will drop, and if you're not in the market yet, you'll have a great buying opportunity. If you're hiring, the drum-tight talent market for anyone with programming skills should loosen up considerably, although big companies may reap the benefits more than small ones, says Oliver Ryan, founder of the tech recruiting firm Lab 8 Ventures. "The 'war' for engineering talent is primarily a supply-and-demand issue, so a widespread pullback of venture capital would likely diminish demand to a point," he says.......a burst bubble could also create new types of adversity. ....suppliers and distribution partners may disappear, your business notwithstanding......money is time, and the best way to ride out a downturn is with a couple of years' worth of cash stashed in your mattress. Just be sure you're prepared to deliver a couple of extra years' worth of growth, because you'll need to if you follow the raise-more-than-you-need plan. "It's not without risk," .... "You'll have to make the numbers to justify your valuation at some point, so you're raising the hurdle on yourself."......To make it over the chasm, you have to show investors traction and momentum--a PowerPoint slide with a line pointing up and to the right. A startup can often manufacture these things by spending enough on advertising and customer acquisition. But the attributes so richly rewarded in the current environment aren't necessarily the same ones that will be selected for once the bubble bursts......In October 2008, Doug Leone of Sequoia Capital gave a famous presentation titled "R.I.P. Good Times," in which he counseled entrepreneurs to squirrel away their nuts for winter and "spend every dollar as if it was your last." In hindsight Leone's forecast, and his warning was seen as alarmist......be more careful about the terms on which you raise money as that "extreme end of a cycle" approaches. Typically, you'll seek the highest possible valuation: (a) It minimizes dilution and generates publicity that attracts talent and clients and even more capital. But as valuations settle--and the inevitable rise of interest rates all but guarantees they will--founders who overreached will struggle to support, or defend, those valuations. In the worst instances, if you finagled an extra 10 or 20 % of paper value by granting investors aggressive downside protections--the "features" and "ratchets" that VCs use to make reckless bets without incurring real risk--you'll find yourself downgraded from owner to employee. "
boom-to-bust  bubbles  downside  economic_cycles  economic_downturn  founders  growth  investors  mindsets  overreach  profitability  priorities  pullbacks  recessions  Sequoia  start_ups  Silicon_Valley  silver_linings  upside  vc  venture_capital  war_for_talent 
october 2016 by jerryking
Emerging Investors in Africa: Africans - WSJ.com
July 5, 2012 | WSJ | By PATRICK MCGROARTY
Emerging Investors in Africa: Africans
As U.S. and Europe Scale Back Amid Global Crisis, Intra-Continent Investments Are on the Rise.

Even as overall foreign investment into Africa has contracted, a cohort of homegrown companies has mounted an unprecedented expansion drive. Investment between African countries has almost doubled in the past five years, to 13% of new projects started on the continent last year, according to a report on foreign direct investment released Thursday by the United Nations Conference on Trade and Development.

African companies are heading into the rest of Africa in an unprecedented investment drive that has cushioned a pullback from the West and signaled the emergence of homegrown multinationals.

The companies behind those investments are chasing high growth rates in fast-developing markets, many of them buoyed by resource exports. Oil in Angola and Nigeria, copper in Zambia and coal in Mozambique have each attracted tens of billions of dollars over the past decade. Over the period, the continent's supermarket chains, construction companies and banks have expanded rapidly.
Africa  FDI  South-South  commodities  South_Africa  Nigeria  pullbacks  investors  high-growth 
july 2012 by jerryking
High-Tech Start-Ups Put Down Roots in New Soil - WSJ.com
MAY 26, 2009 | Wall Street Journal | by SIMONA COVEL. Cities
Like Kalamazoo Dangle Incentives as Silicon Valley and Other Old Hot
Spots See Pullback in Venture Loans
cities  economic_development  incentives  industrial_midwest  Michigan  midwest  pullbacks  Rust_Belt  San_Antonio  silicon_valley  Simona_Covel  start_ups 
june 2009 by jerryking

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