New ask Hacker News story: Ask HN: What happens tech industry in pro-longed high interest rate environment?

Ask HN: What happens tech industry in pro-longed high interest rate environment?
2 by rafiki6 | 2 comments on Hacker News.
The modern 'tech' industry (i.e. companies that primarily sell software based services), has grown and thrived in a sub 7% fed fund rate environment (which we are fast approaching and will likely need to surpass to fight inflation). Presumably this worked because many tech based businesses were seen as massive high risk bets that were unproven. VCs were the primary source of funds and many relied heavily on leverage upstream. Without low rates the VC based funding model will need to change, and companies may need to seek funding from more traditional sources where revenue matters much more upfront. This might mean premature optimization on business models leading to more moderate growth and less of a focus on hypergrowth and global scale. Does this mean the hypergrowth era is over?

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