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We will be seeing many startups layoff folks, pause hiring and shutdown in 2024, if they aren't able to make any money and keep relying on fundraising from vult

We will be seeing many startups layoff folks, pause hiring and shutdown in 2024, if they aren't able to make any money and keep relying on fundraising from vulture capitalists. As expected, the cheap money era is dead, and we will be seeing lots of VCs pressuring and demanding sky high valuations of the startups they've backed for their ROI.

_heimdall 3y ago
That's not really a prediction of 2024 as much as an explanation of what I've already seen in the tech startup world in 2023. Hiring has slowed for many and paused for some, and the focus already had to shift from how to show growth to how to show revenue.
- j4yav 3y ago
  Not disagreeing with you, but noting there are still a lot of companies that raised so much cheap money they can basically run for 200 years, barring investor pressure. Typically they raised at such high valuations they may never achieve a positive investor outcome, but they also will never run out of money.
  - _heimdall 3y ago
    Inflation alone would likely burn through any of that cash much faster though, and that's assuming investors didn't mind leaving the money parked there and avoided clawing it back or forcing an exit.
CSMastermind 3y ago
I hope the cheap money era is dead but it seems like the Fed is already planning rate cuts ahead of the election.
- mrangle 3y ago
  Virtually the entire economy is predicated on cheap money. Upending that norm means major changes in lifestyle for most of the population. I don't just mean doing more with less. I mean that a good portion of white collar workers will be diverted into blue collar work if they are lucky: a lot of it characterized by menial pay and bad working conditions.
- lamontcg 3y ago
  It is real weird to see the Fed suggesting rate cuts with no recession or core financial stress being immediately apparent. Normally the Fed doesn't really cut rates as some kind of christmas present to the economy. I have my doubts they'll actually do that and I suspect that Powell was just "jawboning" because they're trying to engineer a soft landing through talk. The fact that they're even talking about cutting rates now means that the cheap money era is not over and the they're feeling political pressure to cut rates. If we do hit a recession you can bet that they'll slash rates to zero again. They have never once stated any kind of commitment to higher rates and I don't understand how people on the internet read any level of hope into the idea that their viewpoint has changed in any fundamental way.

_heimdall 3y ago

That's not really a prediction of 2024 as much as an explanation of what I've already seen in the tech startup world in 2023. Hiring has slowed for many and paused for some, and the focus already had to shift from how to show growth to how to show revenue.

j4yav 3y ago
Not disagreeing with you, but noting there are still a lot of companies that raised so much cheap money they can basically run for 200 years, barring investor pressure. Typically they raised at such high valuations they may never achieve a positive investor outcome, but they also will never run out of money.
- _heimdall 3y ago
  Inflation alone would likely burn through any of that cash much faster though, and that's assuming investors didn't mind leaving the money parked there and avoided clawing it back or forcing an exit.

CSMastermind 3y ago

I hope the cheap money era is dead but it seems like the Fed is already planning rate cuts ahead of the election.

mrangle 3y ago
Virtually the entire economy is predicated on cheap money. Upending that norm means major changes in lifestyle for most of the population. I don't just mean doing more with less. I mean that a good portion of white collar workers will be diverted into blue collar work if they are lucky: a lot of it characterized by menial pay and bad working conditions.
lamontcg 3y ago
It is real weird to see the Fed suggesting rate cuts with no recession or core financial stress being immediately apparent. Normally the Fed doesn't really cut rates as some kind of christmas present to the economy. I have my doubts they'll actually do that and I suspect that Powell was just "jawboning" because they're trying to engineer a soft landing through talk. The fact that they're even talking about cutting rates now means that the cheap money era is not over and the they're feeling political pressure to cut rates. If we do hit a recession you can bet that they'll slash rates to zero again. They have never once stated any kind of commitment to higher rates and I don't understand how people on the internet read any level of hope into the idea that their viewpoint has changed in any fundamental way.