Is risky the new safe? - by Ali Partovi - Neo News
neo.substack.com · 449 words · saved by 1 readers
Macro trends have toppled giants all year. Early-stage startups may be relatively sheltered from the storm.
Whether you’re investing or choosing a job, the Fed’s choices may decide your outcome more than your own choices. Unpredictable interest rates affect the whole market, albeit not equally. In one respect, this favors early-stage startups, and smaller may actually be safer. New startups aren’t (yet) valued based on discounted cash flows or as a multiple of revenue. In growth-stage and mature companies, those calculations allow tiny interest rate tremors to cause seismic valuation swings. The resulting volatility hurts both investors and employees. The younger a startup is, the less their…
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