WSJ Article Illustrates Office Space Demand Weakness

The Wall Street Journal featured an article today on the slowing rate of venture capital investment and the impact it is having on the growth plans of valley startups. The article illustrates the impact the diminished outlook is having across most all startups, who over the past few months have shelved or cut back on any hiring plans and plans to lease the office space for those employees.

We have seen companies literally put a stop to all growth plans as they seek to preserve as much capital as possible. Some smaller startups have also started to cutback on staff as a result of guidance from their venture capitalists. Both Sequoia Capital and Benchmark Capital have recently put out memos and have given presentations to their portfolio companies advising them to be more proactive when it came to layoffs and reducing burn than being reactive. As a result, many small startups (< 100 employees) have made the decision to layoff, or put any hiring plans on hold.

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