Silicon Valley Update: First They Shutoff The Kombucha, Then The Money, Now The Lights

Silicon Valley startups like Hustle, an ad-messaging company that spent lavishly on things like on-tap kombucha and arcade games for employees, are learning the hard way that party is coming to an end and the bill is finally due. Earlier this month, the company announced mass layoffs according to the WSJ . This depressing scene is now playing out across countless Silicon Valley startups, which sprung up like mushrooms when the money was easy and which are now starting to fold as the decade-long credit cycle tests the limits of the current bubble.

Perhaps the most prominent recent example of a major investor – one that has been spending liberally over the past 10 years – suddenly getting cold feet, is Softbank which had to slash 88% of its planned $16 billion investment in WeWork after the bank’s backers objected to the deal.