This Week in Startups Keith Rabois of Founders Fund + AirBnB's earnings & evolving customer base, SF BOE recall | E1388
Feb 17, 2022
Keith Rabois, a world-class investor known for his sharp insights, joins the discussion. They delve into Airbnb's impressive financials and how consumer preferences are shifting toward longer stays. Rabois reveals his timely prediction about the tech market peak, critiques the diminishing price discipline in venture capital, and outlines Facebook's looming challenges. With six future market predictions, the conversation navigates the complexities of today's economic climate, underscoring the need for adaptive strategies in a rapidly evolving landscape.
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Valuations and Interest Rates
- Tech valuations are directly tied to interest rates, which are influenced by macroeconomic factors like inflation.
- Rising interest rates lower valuations of tech stocks, especially those with future profits, as seen in the dot-com bubble.
Impact of Non-Traditional Participants
- Non-traditional market participants, like those seen during the dot-com bubble and 2008 crisis, can amplify market trends.
- Their involvement, often driven by speculation and easy access to funds, can exacerbate bubbles and lead to more severe corrections.
Managing High Burn Rates in Downturns
- Companies with high burn rates and inflated valuations during market peaks will face difficulty raising capital.
- They might have to resort to down rounds, which are painful for founders, employees, and investors.
