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Startups get more VC funding in a low rate environment, as money chases deals in search of yields. I've seen many silly startups funded this way, as well as "b
by 7e 8y ago
Startups get more VC funding in a low rate environment, as money chases deals in search of yields. I've seen many silly startups funded this way, as well as "burn cash to grow" outfits like Uber and Tesla.
- CodingSucks 8y agoStartups that target mass scale operate like this. Smaller startups are doomed.
- weeksie 8y agoSure but the large firms can borrow so cheaply that it makes it easier for them to buy promising startups. Making the startup ecosystem into an R&D arm of a few big companies. That's bad for innovation overall and our economy in the long term. It's probably the best time to be a founder looking for a quick exit though. Easy funding and lots of buyers willing to pay a lot.
- avinium 8y ago> bad for innovation overall and our economy in the long term. It's probably the best time to be a founder looking for a quick exit though. Aren’t these two points contradictory? When acquisition opportunities are plentiful, people are more likely to start/invest in companies, leading to more innovation and development, no?
- weeksie 8y agoNo, because many of those companies are bought before they can hit an inflection point and become dangerous to an incumbent.