Techmeme Ride Home (TWTR SPC) Techpocalypse Now! W/ @EricNewcomer @loganbartlett & @alexrkonrad
May 14, 2022
Eric Newcomer, tech journalist and Substack writer, Logan Bartlett, a venture capital partner, and Alex Kantrowitz, Forbes senior editor, delve into the current tech crisis brought on by rising interest rates. They discuss the challenges startups face in funding and valuation, and the shift in venture capital towards sustainable investment strategies. The conversation also touches on Shopify's influence on e-commerce, the vulnerabilities of SaaS models, and the cultural legacy of the iPod, exploring its impact on modern technology.
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Interest Rates Impact Tech Stocks
- Tech stocks, especially speculative ones, are declining due to rising interest rates.
- Higher interest rates offer a safer alternative, making investors flee from the riskier equities.
SaaS Valuations Reset
- SaaS companies' valuations are resetting faster than other tech sectors due to their established historical data.
- This allows for easier repricing by the market, unlike sectors like electric vehicles.
Underwater Stock Options
- Public tech company employees with underwater stock options might face challenges.
- Consider the implications for your equity if your startup doesn't offer an extension.