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Could it be though that 2020-2021 was a high water mark for the market, and it may take years for it to return to those valuations? The increasing interest rat
by Apocryphon 4y ago
Could it be though that 2020-2021 was a high water mark for the market, and it may take years for it to return to those valuations?
The increasing interest rates show that we’re in a different era compared to that time.
- staticautomatic 4y agoSure. Recessions tend to last a couple years.
- dragonwriter 4y ago> Recessions tend to last a couple years. No, they don't. The Great Recession—the longest recession since the Great Depression—lasted 18 months. The COVID recession, the most recent and shortest post-Great Depression recession, lasted 2 months. The median post-Great Depression recession has been 11 months. EDIT: Also, however, note that the upthread comment was more about the length of bear markets, not recessions. Those are somewhat correlated but not equivalent.
- sirspacey 4y agoAppreciate the distinction here. My POV may be outdated because most SaaS founders I know were building companies with few IPO reference points for valuation vs today. Still seems the psychology/argument for rejecting significant multiplies on rev hasn’t changed even though the facts on the ground have. I’m concerned a generation of founders may underplay their hand while VCs benefit from overstating the impact of current market conditions on future valuations.