Companies are built either on things money machines can make (software, lets just call this 'machines') or either labour work (things people make). 1) Similar

Companies are built either on things money machines can make (software, lets just call this 'machines') or either labour work (things people make). 1) Similar to how it costs wages, money actually costs something too & it needs a decent rate of return (no not interest). Someone investing can rather that cash elsewhere - especially since prices are up everywhere and its more profitable and there is less competition. 2) If interest rates go up, the machines/software etc need to work harder to basically exist (similar to how if the rent/food etc went up it costs more for a person to exist in a job so they need a higher wage) 3) If the machine isn't able to run profitably, it's basically laid off. With tech its just so cheap to make a machine that you lay off alot of them. Investors want their money back sooner so need more sure things and a better machine worker. If that side gig/moonshot takes 2 years to work, thats too much since the money can be put to better use somewhere else. 4) The valuations drop since the prospect of growth with the ability to invest in new machines decreases drastically. Google for example is forced to invest in 'sure' cashflow things such as fibre and google cloud infrastructure vs stuff that takes 5-10 years to make money if it even does (Nest? DeepMind?). Think about it really hard. Maybe you've wanted to do a side gig - SaaS app or something. If Strawberries or whatever are in shortage and suddenly cost so much and makes way more money - why put your money in the SaaS app when you could somehow source Strawberries as the side gig?