The layoffs at Amylin are the beginning of tech in San Diego being devastated. Cash flow negative companies, of which there are plenty in San Diego, won’t make it. Investors were buying companies, like houses, with the anticipation of appreciation. Take away appreciation and the capital dries up.
Even if a company’s technology is good, why fund the negative cash flows and overhead when you can eventually buy the technology at fire sale?
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Yup. That one hits a wee bit close to home. Needless to say, my coworkers don’t wanna believe me.
