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Higher Rates Will Lead to the Next Generation of Great Tech Startups

chamathreads.substack.com · 2,318 words · saved by 2 readers

Lessons learned from the past 60 years of technology investing may show what’s ahead as we enter a turbulent macroeconomic backdrop

More than 13 years of zero-interest-rate policy in the U.S. has now come to an end. With sticky inflation, climbing interest rates, a focus on near-term cash flow, and potentially a looming recession on the horizon, the outlook for many technology companies appears bleak. In response, the risk appetites of U.S. VC funds have shrunk dramatically, with capital invested down more than 60% between Q4 2021 and Q4 2022. And yet, when you look at the past 60 years of technology successes, the counterintuitive fact is that successful startups were created during every part of the cycle, and even…

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