Is the eventual result for private saas companies that they have to either take a hit in valuation at the next round or if they don’t have PMF, just don’t raise again, possibly at the cost of slower growth? Or is it looking more serious, with unicorn/private company bankruptcies in the next 2 years?
I think it's valuation hits and/or not raising again.
I tend to think the vast majority of startups with overpriced valuations will get scrappy and make cuts if bankruptcy approaches, so I suspect that will be a rare outcome (although when it happens it will get lots of media attention)
So despite many comparisons to the dot com burst, this “tech”(including SAAS) downturn seems very different from 2000? This time it’s more like every company (even those that are private) has more solid demand and PMF so the rise in interest rates is just resulting in valuation hits and possibly slower growth.
Is the eventual result for private saas companies that they have to either take a hit in valuation at the next round or if they don’t have PMF, just don’t raise again, possibly at the cost of slower growth? Or is it looking more serious, with unicorn/private company bankruptcies in the next 2 years?
I think it's valuation hits and/or not raising again.
I tend to think the vast majority of startups with overpriced valuations will get scrappy and make cuts if bankruptcy approaches, so I suspect that will be a rare outcome (although when it happens it will get lots of media attention)
Thanks!!! Big fan of your writing and analysis.
So despite many comparisons to the dot com burst, this “tech”(including SAAS) downturn seems very different from 2000? This time it’s more like every company (even those that are private) has more solid demand and PMF so the rise in interest rates is just resulting in valuation hits and possibly slower growth.