Doug Leone, global managing partner of Sequoia Capital, believes that the “Tech Wreck” (Tech Wreck) will not end so soon, warning that this year’s economic recession may be worse than before and will last at least until 2024.
Leone is pessimistic regarding the outlook for the global economy, and he sees the situation this year as worse and more challenging than in 2008 and 2000. The latter two are financial crisis and dot-com bubble respectively.
“We’re facing a global crisis right now with interest rates going up everywhere, consumers running out of money, we’ve got an energy crisis and all kinds of geopolitical challenges,” he said.
In the current environment, technology leaders and investors are being forced to endure higher interest rates and a deteriorating general economy. High-growth tech stocks continued to trade lower as central banks hiked rates,Nasdaq Composite IndexIt has fallen by nearly 30% this year, a drop of more thanDowandS&P 500 Index。
The above situation has dragged down the valuation of unlisted companies such as Stripe and Klarna. These technology startups have warned that they should control costs and focus on fundamentals.
Leone said: “Think regarding what happened in the last two or three years: capital so much that no matter what you do, you can get paid from investors, no matter whether the decision is good or bad, you can get money. It’s not a good learning. way, but it’s all over”
“We’re going to find…consumers are running out of money, demand is down, technology companies are getting budget cuts, and we have to be prepared to be in this situation for a long time.” Leone estimated that the valuation of technology companies will not be stable until at least 2024. recover.
As for the private market, he believes that seed-stage startups will be less affected than later-stage startups, which are more sensitive to public market movements.
