American billionaire Doug Lyon doesn’t believe the wreckage of tech companies will disappear any time soon, as he has given partner Sequoia Capital, Gloomy outlook for the global economy, warning that the current economic downturn It will be worse than the recessions of 2000 and 2008.
“I think the situation today is more difficult and more challenging than 2008, which was really a crisis for the financial sector, or even 2000, which was a quintessential technical crisis,” Lyon said at Slush’s startup conference in Helsinki.
He explained that rising interest rates around the world, the depletion of consumer money globally, as well as the energy crisis and geopolitical challenges all together paint a bleak picture of the economy, the network reported. “CNBC”, and viewed from “Al Arabiya.net”.
He added that after all of this, tech stocks have declined rapidly and the Nasdaq Composite is down nearly 30% year-to-date and is facing a steeper decline than the decline in the Dow Jones Industrial Average or the Standard. & Poor’s 500, while the valuations of emerging companies like Stripe and Klarna plummeted.
As a result, said Leon, startup founders are warning their peers that it’s time to keep costs down and focus on the essentials.
He said he didn’t expect valuations of tech companies to recover until at least 2024.
He added: ‘My expectation is that we won’t get out of this very quickly, and the 1970s recession may be the closest picture of our current reality, and even though the situation is like the year 2000, a number of companies will not recover for 10 years.”
