4 ms·
Outdated may be a bit harsh. I'd say that almost everything we knew about modern startup culture was predicated on one thing: easy access to cash. That had huge
by kjellsbells 4y ago
Outdated may be a bit harsh. I'd say that almost everything we knew about modern startup culture was predicated on one thing: easy access to cash. That had huge impacts on ease of funding, length of runway before profit, safety to pivot, and so on.
If the era of cheap money is truly at an end, then the whole edifice must be reconsidered.
- cj 4y ago> If the era of cheap money is truly at an end It’s important to remember the economy is cyclical. We’re in a funding drought. Probably for another year or so. We’re at one extreme at the moment. Things will eventually move back to usual once interest rates come down. I’d say in about a year. A lot of VC activity relies on using borrowed money. It’s very similar to how no one wants to buy a house right now because rates are too high, the same thing is causing investors to leverage their assets much less. Once interest rates move back to normal levels things will pick up again.