Will rising interest rates decimate startup valuations?
Equity
TechCrunch
4.2 • 372 Ratings
🗓️ 19 February 2022
⏱️ 29 minutes
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| 0:00.0 | Hello and welcome back to Equity, a Tech Ranch podcast all about the business of startups where we unpack the numbers and the nuance behind the headlines. |
| 0:17.0 | This is Alex, we are recording this on a Twitter space on Friday afternoon, and I have Dragooned onto the podcast my my friend and someone that I've known for a long time the |
| 0:26.2 | text scene on shoe Sharma on shoe hello how are you |
| 0:29.0 | hey Alex on shoe if you don't know him, former Salesforce VP, former Storm Ventures's venture partner, |
| 0:35.8 | which is actually where we first met, currently co-founder, sorry, just founder and CEO at Skyflow, |
| 0:41.6 | and I dug through his LinkedIn and apparently he even wrote code for Oracle in the 90s. |
| 0:46.8 | So Ansha you've been around for, what is it now, three or four tech cycles? |
| 0:51.4 | Yes, I have seen the times when... three or four text cycles? Yes. |
| 0:52.8 | I have seen the times when people said |
| 0:55.7 | Java is the future. |
| 0:58.0 | And we're here today because whenever I notice |
| 1:00.7 | that the stock market's going down and do a tweet saying, |
| 1:04.0 | look at this sell-off. |
| 1:05.0 | Anschru jumps into my Twitter mentions and goes, |
| 1:07.2 | yes, but if you look at a 10-year chart of sales forces revenue |
| 1:10.1 | growth, all that's meaningless noise. |
| 1:12.4 | So, honestly, what I want to do is set up. new growth, all that's meaningless noise. |
| 1:12.5 | So honestly, what I want to do is set up the conventional wisdom about what's going on, and |
| 1:18.8 | then I want to get your reaction to it. |
| 1:20.7 | But as far as I can tell, there is in general an expectation that as interest rates rise that there will be a decline in the value of certain high growth assets. |
| 1:31.0 | And in our little world of technology, it appears to be the |
| 1:34.2 | thesis that people mostly expect that as the Fed titans this year, monetary |
... |
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