Will Rising Interest Rates Decimate Startup Valuations? – TechCrunch


Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is Saturday, which means it’s no normal day for us to drop an episode. But what are we if we don’t try at heart? So, we’re back today.

What do we have in store for you? I brought Anshu Sharma on the podcast — and a Twitter space, so make sure to follow the podcast, yeah? – to talk about interest rates, technology growth, startup valuations and how they all relate to each other. Sharma was the right person to have on the show as he is a great tech employee (Oracle, Salesforce), an investor (Storm Ventures and Like an Angel), and he is a founder to boot. So not only has he been around, but over time in several in the world of technology.

TechCrunch has covered SkyFlow, its startup, a few times, including its most recent fundraising.

Sharma thinks some of the market concerns about rising interest rates hurting technology stocks are silly. His dissertation boils down to the value of growth over a longer time horizon than what a DCF-tuned spreadsheet could tell you. That said, rising interest rates will impact some startup inputs, such as venture capital funds, in the medium term, so there was a lot to chew on.

We try to keep Equity at a fairly high level and focus on discrete events. But why put on a show if you can’t use it to scratch your own itch every now and then?

The pod will be back on Tuesday due to a US holiday this Monday. Chat quickly!

Shares fall every Monday at 7:00 AM PST, Wednesday and Friday at 6:00 AM PST, so subscribe to us Apple Podcasts Cloudy Spotify and all casts.

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