VCs about to learn a hard investment lesson

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 90%

United States News News

United States United States Latest News,United States United States Headlines

The role played by crossover funds that invest in public tech stocks and private start-ups is worrying venture capital leaders from Silicon Valley to Australia.

Tiger’s spree raises questions about how any investor can make so many decisions in such a short space of time and maintain high due diligence standards. But right now, the biggest question is what might have happened to the valuation of Tiger’s private start-up portfolio.

The consensus is that the tech wreck on equity markets – where almost half of companies on the Nasdaq have fallen 50 per cent or more from their 52-week highs – could take between 12 and 18 months to flow through to start-up valuations. One senior Australian VC investor says even though the tone of board meetings at investee companies is obviously radically different from the second half of 2021, when start-up valuations were frothy, there has also been a distinct change in tone from the March quarter to the June quarter.The basic message now is that start-ups need to pull in their horns – be a little less aggressive about growth and a little more focused on conserving cash and proving the sustainability of unit economics .

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This Labor high-flyer puts business at the forefrontJim Chalmers, who could soon become the nation’s 41st federal treasurer, has learnt the lessons of Labor’s 2019 attacks on the top end of town. The party of The Left Has he ever worked in the private sector?
Source: FinancialReview - 🏆 2. / 90 Read more »