Doug Leone, global managing partner of Sequoia Capital, believes the “Tech Wreck” (Tech Wreck) will not end so soon, warning that this year’s economic downturn could be worse than before and will last until at least 2024.
Leone is pessimistic about the prospects for the global economy and considers this year more serious and challenging than 2008 and 2000. The last two are respectively the financial crisis and the dot-com bubble.
“We are facing a global crisis right now with interest rates going up everywhere, consumers are running out of money, we have an energy crisis and all kinds of geopolitical challenges,” he said.
In the current environment, tech leaders and investors are forced to put up with higher interest rates and a deteriorating overall economy. High-growth tech stocks continued to slide as central banks hiked rates,Nasdaq Composite IndexIt’s down nearly 30% this year, a decline of more than thatDowAndS&P 500 index。
The above situation has dragged down the valuation of private companies like Stripe and Klarna, tech startups that have warned they should control costs and focus on fundamentals.
Leone said: “Think about what happened in the last two or three years: capital so much that whatever you do, you can be paid by investors, it doesn’t matter if the decision is good or bad, you can get money, it’s not good.” learning, but it’s over”
“We’ll find out… consumers are running out of money, demand is down, tech companies are experiencing budget cuts, and we need to be prepared to stay like this 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 seed-stage startups will be less affected than later-stage startups, which are more sensitive to public market movements.
