Chapter
The impact of inflation rates and interest rate environments on businesses' attempts to go public
04:27 - 14:43 (10:15)
Entrepreneurs starting their seventh or eighth business may face difficulty going public if previous companies have been unsuccessful, resulting in the need to pay a high price. However, adjusting the willingness to pay for growth assets may be necessary in environments with a stable inflation and interest rate rate environment.
Clips
The current inflation and interest rate environment will require an adjustment in the willingness to pay for growth assets.
04:27 - 08:13 (03:45)
Summary
The current inflation and interest rate environment will require an adjustment in the willingness to pay for growth assets. The volatility and uncertainty in the next 6-18 months will likely lead to less allocation and lower payment for risk assets, as forecasted by negative real rates.
ChapterThe impact of inflation rates and interest rate environments on businesses' attempts to go public
EpisodeE73: Late-stage VC markdowns and mistakes, market strategy, Ukraine/Russia update with Brad Gerstner
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
In this episode, the speaker discusses the difficulties faced by entrepreneurs who are not the first or second but the seventh or eighth trying to go public in a market that already has a few successful players.
08:13 - 11:06 (02:53)
Summary
In this episode, the speaker discusses the difficulties faced by entrepreneurs who are not the first or second but the seventh or eighth trying to go public in a market that already has a few successful players. He emphasizes the importance of questioning long-term profitability and the possibility of paying a heavy price to get public due to the pre-existing gas-guzzling machines in the market.
ChapterThe impact of inflation rates and interest rate environments on businesses' attempts to go public
EpisodeE73: Late-stage VC markdowns and mistakes, market strategy, Ukraine/Russia update with Brad Gerstner
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Brad's charts show that public SaaS valuations are reverting back to the historical mean, causing potential disappointment for late-stage private investors who assumed automatic gains in the last private round before going public.
11:06 - 12:50 (01:43)
Summary
Brad's charts show that public SaaS valuations are reverting back to the historical mean, causing potential disappointment for late-stage private investors who assumed automatic gains in the last private round before going public.
ChapterThe impact of inflation rates and interest rate environments on businesses' attempts to go public
EpisodeE73: Late-stage VC markdowns and mistakes, market strategy, Ukraine/Russia update with Brad Gerstner
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
For every 100 basis point increase in interest rates, tech business valuations may decrease by 15-20%.
12:50 - 14:43 (01:53)
Summary
For every 100 basis point increase in interest rates, tech business valuations may decrease by 15-20%. The article suggests that the valuation of a reasonably high-growth software business generating $100 million in revenue would be worth $800 million in the public markets.