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you need to think 2nd order effects: VCs need mega exits to make returns, which usually are blockbuster IPOs. Higher rates will crash quite a lot of high-growth
by ak_111 4y ago
you need to think 2nd order effects: VCs need mega exits to make returns, which usually are blockbuster IPOs. Higher rates will crash quite a lot of high-growth stocks making IPOs less appealing for investors, which messes up with A16z business model of exiting via IPOs.
- antupis 4y agoThey can also get fabulous deals currently so it is not bleak as it sounds. Also both Andreessen and Horowitz have that cockroach like ability to survive so I would not count them out even whole business model would collapse overnight.