(Image sources: 1, 2) Recently, there has been a lot of talk about a possible bubble in startup valuations. The question I want to explore is: “How are VC investment returns affected by bubbles?” That is, if it’s a bubble, should VCs (and by extension, startups that need VC funding) close up shop for a few years and wait until market conditions change?
Bubbles and Unicorns
Bubbles and Unicorns
Bubbles and Unicorns
(Image sources: 1, 2) Recently, there has been a lot of talk about a possible bubble in startup valuations. The question I want to explore is: “How are VC investment returns affected by bubbles?” That is, if it’s a bubble, should VCs (and by extension, startups that need VC funding) close up shop for a few years and wait until market conditions change?