VC Funding Decline

You are forgetting the lag effect.It will take a while for this to trickle to the VC market. Consider a situation where most of them have already raised funds. They may become more picky because of reanalyzing long-term effects (shittier IPOs), but they will still have money to invest.If you are worried, perhaps you should consider the alternate: bootstrapped model.It seems that even though bootstrapped companies grow much slower, these companies are a lot more healthy and aren't r

Complete uninformed speculation: The stock market doesn't seem to like him. If that continues, the big markets may be less appealing as investments, interest rates may stay low, and so VC may be a (relatively) more appealing place to throw money. That would fuel money towards more startups, but it's a wildly uneducated guess.

This is a consequence of money getting more expensive. When rates are low, investors pile money into non-revenue producing startups in hopes that something will return 1000x. Now rates are up and the smart money is moving elsewhere.

There is no bubble. There may be a dip in funding for companies of a certain stage, which could be due to any number of factors. Fund vintage (funds raised optimally at bottom of 2009 are now fully allocated); shift in focus away from sectors (no money for social media); random variance in relatively small pool of VC (tiny portion of total capital invested in small businesses).

Good op-ed in The Information about this exact topic: https://www.theinformation.com/articles/the-end-of-venture-c...

Yeah exactly if anything we're seeing the beginning of the disintegration of the big monoliths (Google at least) who hoovered up everything in their path.VC investment has ebbed, that's true. But maybe it will encourage businesses with a more solid path to revenue --even self-bootstrapped -- less hype, and more practical product oriented engineering. We can hope.I do think a lot of us may end up out of work. Myself included, maybe.

Potentially relevant article (soft-paywall)https://www.google.com/amp/s/www.nytimes.com/2019/01/11/tech...

Most likely case -- The pool of companies seeking VC funding has exploded as the playbook became democratized- The pool of VC funds has exploded as the playbook became democratized- There is still a thin layer of interesting companies that are deserving of VC investment as there was in 2021, 2016, 2011, back and back, but this is the actual constraint and hasn't grown to keep paceThis all strikes me as simple and cyclical.

Getting into debt with highest interest rate in decades doesn't bode well for the future. On the other hand, VC funding seems to have dried up as well. Between rock and a hard place.

There will likely be a decrease in the number of VC-backed startups and the amount of hiring that they are doing: if this occurs it will reduce demand. In a year where the S&P has dropped 44% YTD customers may value positive cash flow in a prospective vendor over additional engineering-driven features: perceived odds of survival may offer significant differentiation it didn't even six months ago. This represents a potentially very different competitive equilibrium, at least in B2B markets, t