Trumped Up: A Startup's Journey

Trumped Up: A Startup's Journey

Between 2019 and 2020, 46% of small businesses closed their doors due to the COVID-19 pandemic. The economy fell apart, as any economy would, but I learned an untold secret from an inside source behind all of this.







First, let us cover the basics.






Half of the economy was fueled by small businesses. However, in the doctrine of a pandemic that swept its horrific wrath worldwide, it was nearly impossible to avoid this. This story is not about the pandemic but about the sense of optimism that birthed in 2021 and 2022 when 480,000 small businesses opened their doors. This seems great, yes, but it is quite the opposite.





480,000 Small Businesses

That is a lot. In 2019, before the pandemic, there was half of this amount. Yet, due to the unforeseen, it was not the fault of the 46% who fell apart. Rather, along comes a spider, the true source of the blame and perhaps the reason why we are heading toward a massive "Arab Spring" once more. His name is Trump.




"We are oft to blame, and with devotion's visage and pious action, we do sugar upon the Devil himself" - Hamlet









Love him or hate him, he approached Venture Capitalists in a last-ditch effort to bring the economy back to life. After all, he was in charge, and though a man whose ends often justify the means, or one seemingly without a conscious, he wanted America to flourish again because it would enhance his delusions.





The mistakes made in the months between July 2021 and January 2022 will destroy us. When small businesses closed and as the economy crumbled, Trump advised Venture Capitalists to invest in high-risk startups at seed rounds of up to 10 times the ordinary amount.





So, under Presidential command, they played along. However, what many do not know is that these startups being invested in were not the most brilliant in their endeavors. In any typical fashion, they were provided seed rounds of millions, with untested products and in dog markets. This was a mistake.










What We Learned In Business Class

In any BBA coordination, risk must be mitigated prior to investment. The fact that over 400,000 startups emerged so quickly with no clue on how to market the products (or, in hindsight, that 44% of these companies offered products no one even wanted) leads us here.




As of a 2024 study, 80% of startups are about to run out of cash this next year, and what then? The only thing we can do is try to support them. However, let this be a lesson: businesses are risky, but are even riskier when they are believed in. This shows how prominent politics and economics are, and to the level of extent in which they co-coordinate.









This is sad but true.



If you think this will destroy us; comment if this will work out. If you are one of the 80% of startups that fail, contact me at www.valiancecoach.com. I offer Business Consulting at $50 an hour.




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