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We are about to go through a period where investors will question every investment a lot more. Investments that looked promising at the beginning of the year wi
by WheelsAtLarge 7y ago
We are about to go through a period where investors will question every investment a lot more. Investments that looked promising at the beginning of the year will look bad because the demand for the service or product will dry up and there won't be any possibility for an investment return. So investors will be looking to back out when and where ever possible. While the money that has been given will likely be spent any new money won't be given out as easily as before.
We're also going to see a credit crunch where the lenders will make it hard for borrowers to borrow money and many lenders are going to go bankrupt because borrowers won't be able to pay back their loans.
Also, the VC's will also deal with a cash crunch too. Many of them have lost a lot of money and asset value. They just don't have the money they had at the beginning of the year.
It's going to suck for a while but we'll get through it the same way we have in the past.