By now, you probably know that the “Silicon Road” is a virtual dead zone for startups, which means that many startups fail to break into the global mainstream.
The tech sector, in particular, is at risk of a virtual death spiral, according to a report released by VentureBeat, which said that “Silk Road” startups had fallen by a whopping 76% since 2014.
According to the report, “Silken Road” companies like Facebook, Airbnb, Pinterest, Uber and Dropbox have all experienced significant declines.
While the report cites a number of factors that have contributed to the losses, such as a lack of investor interest, an inability to scale their operations or a lack to build out a product that is appealing to the broader consumer market, the report also cites the “high barriers to entry” that make launching a startup a challenge.
While the report did note that the financial “reserves” for the “S-Road” companies have remained relatively high compared to their peers, the companies have seen some significant increases in revenue in the past year, with revenues increasing by more than 50%.
While the rise in revenue is great news for the industry, it comes at a price.
According to the study, “S” Road companies have “little to no cash flow or revenue growth.”
This “high cash reserves” can be a problem for startups as it leaves them with a large amount of debt and cashflow that is not sustainable.
In addition, it is also a big issue for those who are launching startups on the “silicon road” as they have the financial resources to scale, but do not have the ability to monetize their businesses.
This could make it hard for startups to scale to the level of profitability they would need to thrive in a market that is dominated by the “big four” of tech giants, according, which is why the “silver bullet” of building a “Silko” company is crucial.
This is where “Silent Circle” comes into play.
The company that is most closely associated with the “s-road” is “Silicone Valley,” which is a startup incubator that is focused on creating new companies that are able to scale quickly and profitably.
The incubator has been working to establish a “silent circle” for startups by building out an ecosystem of talent that will build their product and business plans quickly, the New York Times reported.
The report said that Silicon Valley is a “good fit” for a number startups, but that it was “a little more complicated than it seems at first glance.”
The incubators team is currently recruiting talent from around the world, but some of these talent have not yet been able to secure funding.
In an interview with VentureBeat with James Corbett, CEO of the incubator, “We’ve had to figure out how to build the infrastructure, which was very difficult because we didn’t have the funding, and we didn, in fact, find out that we had a big hole in our budget,” Corbett said.
“That’s when we were like, ‘Oh, shit, we’re not going to be able to do this.'”
Corbett said that his team has invested a lot of time in identifying the talent that they can find in order to “build a new kind of network” for companies to “startups,” but that the company is not quite there yet.
Corbett told the New Yorker that they are not “committed to building a network” and that it is “too early to say what the future looks like.”
The “sizzle” of Silicon Valley may be good for the startups, however, Corbett added.
“We’re seeing a lot more companies coming through, and that’s really encouraging.”
While Corbett and his team have found a lot to like about the industry at large, there is still a long way to go in terms of “Silinavelog” startups that are starting to break through the “bunkers” and “Silkinocracies” of the “gold rush.”
Corbett admitted that it may be too early to predict what the “endgame” will look like, but said that he believes that there will be a “huge surge” in new “Silinovarials.”
Follow Allie Conti on Twitter @allie.