“Revenge startups” are the hottest new tech trend, as laid-off employees look to get even with the companies that let them go.
According to The Wall Street Journal, many laid-off employees are founding startups that compete in the same space as the companies that laid them off. What’s more, after years in high-paying leadership roles, many of these entrepreneurs are well-suited to running their own companies and have the means to weather the inevitable challenges.
Jen Zhu is one such person, co-founding Maida Health Inc. after her job at Carbon Health Technologies Inc. was axed.
“For me it was initially a sense of relief,” Ms. Zhu said of her dismissal. This, in turn, gave her the courage to start her own company, feeling like she “didn’t have an excuse anymore” not to do it.
Read more: Tech Layoffs Are Reshaping the Job Market
The biggest challenge some may face, however, is finding the necessary funding to launch their own company. WSJ reports that seed-level venture capital dropped 40% in Q4 22 from the previous year, marking a multi-year low.
Nonetheless, many are undeterred and believe the money and opportunities are available for those that try hard enough.
“Having a good group of people around you and using that fear to motivate you is helping me overlook the market conditions. There’s money out there,” said Sarah Porter, who founded MedDefend Corp. after being laid off in October.
As more laid-off individuals follow Zhu and Porter’s example, “revenge startups” may become another issue companies have to deal with due to what some see as short-sighted layoffs.
