The VC Budget Party has ended

“This may be the best time for any kind of business in any industry so that it can raise money for all history, like the time of the ancient Egyptians,” said Slack CEO. New York Times In 2015

It was not an exaggeration. While the interest rate remained close to zero, investment funds have collected more investment than ever and expelled their investments in some of the highest evaluations they have ever seen.

The glory of VC’s glory is over, and if it is a guide history, the technical pants should last until 2024 and afterwards. In other words, the crowd of investment has just just begun.

The Ultralow interest rate benefited from investment in several ways. Low returns in ordinary investments fueled investors to Silicon Valley, who promised great returns. Between 2016 and 2021, US investment investment tripledHuman beings compress the rate of time and make the future look closer than it is. So it is not surprising that a lot of exotic and exotic startups are financed – a style trip, flight taxis, autonomous vehicles, and more. Cautiously took a back seat. Sam Bankman-Fraded Crypto-Exchange, FTX drew a list of water chip investors led by Capital Sequoia Lumini Silicon Valley.

Startup evaluations, whose profits in the future is far -fetched, was very swelling with easy money. Following the integration of Quantumscape Battery in 2020 with a Spac, its market hat went beyond General Motors – even if the company expects to sell for years. Easy money also made market liquidity and helped the capitalists get out of their investments. Previously, many non -profitable companies have never floated in such high assessments. In 2021, more than a thousand IPOs came to the US markets, more than twice the previous record.

Punch bowls left the VC Party after the start of the Federal Reserve in 2022. Quantumscape stocks have fallen by more than 90 percent – but at least, unlike many other startups, it is still in the business. Bankman-Fied is in jail and is waiting for trial. The IPO market is dry. New participants in the VC world have participated in the hills. Others are confronted with major capital calls from VC funds that have been committed to good times. Hungry from the new budget, many startups face a dark future. WeWork, who describes itself as “administrative solutions” (appears to be better than “rent”) and once exercised about $ 50 billion in valuation, is the last thing to hit the skates.

The NASDAQ Technology Stock Index was strongly re -established in the first half of 2023. There is a lot of excitement about artificial intelligence – Navidia, which uses graphic processing units for artificial intelligence, is worth more than a trillion dollars. However, big speculative bubbles take years to open it. The bear market rebounds, otherwise known as “suction demonstrations”, are commonplace. After the dotcom hustle, NASDAQ took a year and a half to get rid of it (and more than 15 years to recover its peak). The IPO market has witnessed few years.

The bear market in technology stocks is likely to return to 2024, with the NASDAQ index to reach the bottom of the new multi -year. The startups are more crowded and investment funds continue to do negative returns. In the case of NVIDIA, it is worth reminding what happened to Cisco systems. During the Dotcom bubble, Cisco, whose servers used the Internet, was briefly the most valuable company in the world. Its shares were traded at nearly 40 times the sale before the accident. More than two decades later, Cisco’s share price is much lower than the peak of the bubble. With about 35 times the sale, NVIDIA can well incur a similar fate.