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> This slow down will have a disproportionate impact on international companies, asset heavy companies, low margin companies, hardtech, and other companies with
by ilamont 4y ago
> This slow down will have a disproportionate impact on international companies, asset heavy companies, low margin companies, hardtech, and other companies with high burn long time to revenue.
Wonder how things will shake out for biotech. I know biotech investors have long timeline, but surely they are feeling pressure too ("LPs will expect more investment discipline")
- ska 4y ago> I know biotech investors have long timeline, but surely they are Inherently long timelines has pluses and minuses, but can make you very sensitive to timing. Raising a bunch of money to go through a long dev cycle just before a downturn/recession can be a pretty comfortable place to be. Coming out of that development into the face of one - brutal.
- dredmorbius 4y agoMuch of that depends on how long and deep the recession goes on, and the extent to which investors are forced to sell even high-quality assets to meet cash obligations. Bad investments driving down good is one of the perverse dynamics of panics that J.K. Galbraith notes in The Great Crash: 1929: The great investment trust boom had ended in a unique manifestation of Gresham's Law in which the bad stocks were driving out the good. (Chapter VI)