Lots of warning signs in the tech industry.
According to the site layoffs.fyi that tracks layoffs in the tech business, almost 120.000 people have been fired from startups all over the world since March. Within the last two months, more than 700 startups on all levels of investment rounds have discharged up to 100% of their workforce.
Venture Capital investment has dropped 19% between fiscal quarters in the first four months of 2022, and the USA tech stock exchange Nasdaq has melted by more than 27% since January 2022.
History seems to be repeating itself
For us who experienced, learned, and profited from the dot.com area 22 years ago, this is a Deja Vue thing.
Traditionally, growth has been heavily funded by investors’ money. In the old paradigm, the number of employees and the burn rate of venture capital was a measure of success.
That’s how paper tigers are born.
With investors’ money paying for big overheads and an army of expensive consultants.NIM has, from day one, advocated that exponential growth is triggered by doing more with less.
Investment policies are changing
The business-to-consumer tech companies had to live with disrupted logistics chains, high oil prices, and the prelude to Web3. Inflation, unemployment, mental distress. What looked like a fast recovery for the economy at first is settling down as unfulfilled promises. People now think twice before buying anything.
What does this mean for investors?
Since interest rates are high in response to scaling inflation, investors could prefer to leave the money sitting at the bank or invest in Bond yields. Perhaps because of the lack of demand or because the market expects inflation to linger for longer. Investors are armoring their capital against the foreseeable melting of their earnings to inflation in the long run.
NIM has a different approach
Our philosophy is that all operations and services must be adapted to this new reality. Investors take profit when the invested company goes public or is sold. So it was okay to burn money to boost the value quickly, but why would investors have to wait?
Why not pressure for return on investment now?
This is how we at NIM believe that the market is changing.
By bringing back profitability!
And that is the purpose of NIMs ecosystem, as shown in the Passive Income Tokens (NIMPI) that are the primary investment vehicle of NIM. The currency CREATIVES will be the speculative investment vehicle, with an intrinsic value based upon the flow of royalties from internet content.