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As a little boy, it feels like more and more of the big boys are leaving the playground and taking their ball home?
by ereyes01 9y ago
As a little boy, it feels like more and more of the big boys are leaving the playground and taking their ball home?
- jacquesm 9y agoIt's a pretty logical next step and just like start-up school but at a higher level. The ones that are slowly squeezed out are the later round investors and it is very much in YC and the founders interest to have those founders make the very best decisions in later stages of their companies. Think of it as start-up high-school.
- Analemma_ 9y agoThat's just the business cycle: early-stage investment is drying up as interest rates go up and it becomes clear who the winners of the last "Cambrian explosion" were. Probably we'll have a recession soon and early-stage investment will pick up again towards the tail end of it.
- tedmiston 9y agoWhat makes early stage investment pick up again with respect to a recession?
- toomuchtodo 9y agoCheap money from central banks to stoke the economy causes capital to scrounge for returns, leading dollars into venture funds. As interest rates climb once the economy is growing (we are here), capital no longer needs such risk to obtain returns, hence the flight to safer financial instruments (and the seed/A squeeze currently occurring).