Tech Valuations

considering valuations have severely dropped over the past year, isn't this the best time to get into tech investing? see so many posts/articles talking about the end of an era but there's so many cheaper businesses out there now no?

 

Feel free to buy pre-ipo rsus on secondaries - wide variety (even at big companies - e.g. spacex, stripe, anthropic, etc) available at significant discounts (-50%+) to their last raise if you want to gamble. I've bought some, but still seems risky

 
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Id argue it’s the best time to get into tech investing. High rates lead to a contraction in dry powder, so only the best companies will get funded. Shit companies and some VCs who backed them will go to 0. Value will be derived from PLG and operational efficiency, not multiple expansion. AI is leading to faster product development than ever seen before, hell even Google is being disrupted effectively. In this era you’ll actually develop a knack to pick and find great companies, rather than just back the last high cash burn company backed by some T1 VC/angel. This is not to say the investors who made bets that blew up at the end of the era of multiple expansion are bad investors, in fact it was a completely valid strategy and billions would be left on the table if you stayed on the sideline, but rather it will not be as easy as it was in the past. Obviously pre-seed and seed will still have many 0s, but you’re going to much more tame and disciplined Series A+ investing w/o multiple expansion.

 

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