Founders Fund's Keith Rabois predicts trouble for highflying startups - Business Insider

on April 22, the Founders Fund general partner and well-known contrarian walked listeners through his predictions for the startup ecosystem in the looming downturn. It wasn't exactly the rosy outlook many other investors have clung to.those that rely on healthy margins for per-unit sales

In the past, investors have gravitated towards businesses that have the high margins. But now, those metrics might seem to be a less perfect measure of the health of the business, according to Rabois. The biggest offender was the reliance on growth, or the appearance of growth, over fundamentally sound unit economics, Rabois said. That led to a valuation inflation, which is starting to track back down to historical levels.

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