Start-up investors issue warnings as boom times 'unambiguously over' - 0 views
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Y Combinator said companies have to “understand that the poor public market performance of tech companies significantly impacts VC investing.”
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Slow your hiring! Cut back on marketing! Extend your runway!The venture capital missives are back, and they’re coming in hot.With tech stocks cratering through the first five months of 2022 and the Nasdaq on pace for its second-worst quarter since the 2008 financial crisis, start-up investors are telling their portfolio companies they won’t be spared in the fallout, and that conditions could be worsening.
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It’s a stark contrast to 2021, when investors were rushing into pre-IPO companies at sky-high valuations, deal-making was happening at a frenzied pace and buzzy software start-ups were commanding multiples of 100 times revenue. That era reflected an extended bull market in tech, with the Nasdaq Composite notching gains in 11 of the past 13 years, and venture funding in the U.S. reaching $332.8 billion last year, up sevenfold from a decade earlier. according to the National Venture Capital Association.
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