Previous Post
Next Post
0

Asked by

Community Member

on

in

Venture Deals

How Might the Federal Reserve's Interest Rate Hike in 2022 Impact Tech Startups' Valuations?

Does anyone have a perspective or done an analysis of how The Federal Reserve raising interest rates in 2022 might or might not impact tech startups multiples? Some Wall Street analysts are predicting that higher interest rates will be good for some sectors like banking stocks and bad for tech stocks which could mean that tech startups valuation could be lower. I know these are just forecasts just wondering what the VCs are thinking. Appreciate your thoughts.
1 See in Base
0

Answered by

Community Member

on

*Startups are eating the world*. The returns from startup investing are the best across major asset classes, and this is unlikely to change in the short term. Startups are disrupting every major industry worldwide, from mining to banking. They are also creating new markets, like Web3 and NFTs. I don't see any major risks to valuations in the short or medium term.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?