The Case for the Fat Start-Up

Much has been written and said about the current economic downturn and the resulting lessons on how to run high-technology companies. Quite famously, Sequoia Capital, the premier venture capital firm in Silicon Valley, held a mandatory all-CEO meeting in fall 2008 during which it advised them to “Cut spending. Cut fat. Preserve capital.”

Ericsson: Thanks a Lot, Sony

Now we know why Ericsson declined to offer a specific business outlook for 2009 when it last reported earnings. This morning the company posted a 35 percent drop in first-quarter profit, its financials undermined by its Sony Ericsson joint venture and by customers postponing purchases because their local currency has collapsed.