# Why Current Startup Employees Will Outshine Boom Workers
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Chapter 1: The Illusion of the Boom
In the midst of a recent tech boom, an extravagant celebration unfolded. A startup had secured $1 million in funding and promptly splurged $100,000 on a lavish party. Despite only a casual acquaintance with the founder, I received an invitation and found myself ascending to a luxurious restaurant atop a skyscraper.
A dinner there could easily cost $700 for two, so I was astounded by the opulence. The venue was vibrant with revelers, unicorn inflatables, and an endless stream of exquisite canapés. I engaged the young founder, who looked like a modern-day Tony Stark, decked out in a tuxedo and full of bravado about their partnership with Sequoia Capital.
However, the startup was yet to generate any revenue and struggled to articulate its business model, which seemed to blend elements of Alibaba and Stripe. Having seen their financial records, I realized that the narrative presented to the public was far from the truth, yet no one else seemed aware of the discrepancies. The media lauded the founder as a prodigy, but I knew the reality was far less glamorous.
As I savored the complimentary canapés, it struck me that I was merely coasting along during a period of prosperity. In such boom times, anyone with a voice could attract funding, leading to a culture of complacency. Jack Altman, a well-known figure in Silicon Valley, recently stated, "Those working at startups during this downturn will develop into far superior operators than those who only experienced the boom." I couldn't help but agree.
Since 2008, the entrepreneurial landscape has been characterized by ease and opportunity. The likes of Theranos, FTX, and WeWork demonstrated that one didn't even need to convey the truth to succeed; one merely needed to sound competent. This trend extended beyond founders; employees in the tech sector had also become lazy, lulled into a false sense of security by high salaries and stock options that ultimately masked the true financial health of their companies.
As a tech employee in 2020, I too fell victim to this delusion. My expectations were skewed, believing that landing a few clients would justify a hefty paycheck. Looking back, I see how the boom era distorted my perception of hard work.
Downturns Foster Problem Solving
Within the workforce, two types of individuals emerged: problem solvers and problem creators. Many from the boom era grew accustomed to a sense of entitlement, spending their time voicing complaints rather than seeking solutions. Leaders from companies like Shopify and Coinbase had to intervene, emphasizing the need for focus. A startup must have a singular mission rather than attempting to tackle multiple issues simultaneously.
This shift led to the departure of many entitled employees. As interest rates increased and the stock market faltered, former boom workers faced a rude awakening. Free lunches vanished, and teams dedicated to activism were disbanded, forcing a return to a more grounded reality. Workers began to understand that hard work and problem-solving were essential to maintaining employment and earning a decent salary.
Chapter 2: Embracing the Challenges Ahead
The current climate is undoubtedly challenging. Financial institutions continue to falter, and advancements in AI are eliminating less productive roles. However, I remain optimistic. My own experiences during the 2008 financial crisis taught me invaluable lessons about resilience and the realities of running a business.
I learned that customer expectations are paramount and that every client gained is a victory worth celebrating. Those who have only known the prosperity of the recent boom would benefit from reflecting on the lessons learned during previous downturns. If banks continue to collapse, we may find ourselves in a similar recession, where the luxuries of easy funding and perks will vanish.
Investors will shift their focus to profitability, and if a business can't demonstrate this, funding will dry up quickly. Downturns serve as a humbling experience, reminding us of the value of hard work and perseverance. We are hungry for this shift.
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In the first video, "Why the tech downturn could be a boon for startups," we explore how current economic challenges can create unique opportunities for innovation and growth.
The second video, "Why Widespread Tech Layoffs Keep Happening Despite A Strong U.S. Economy," delves into the paradox of ongoing layoffs and how they reflect deeper issues within the tech industry.