We’ve spent so long staring at record venture capital results around the world from Q2 that it’s nearly Q3.
We’ve seen record results from cities, countries, and regions. There’s so much money sloshing around the venture capital and startup worlds that it’s hard to recall what they were like in leaner times. We’ve been in a bull market for tech upstarts for so long that it feels like the only possible state of affairs.
Digging back through our notes from the last few months from data sources, investors, and founders, it’s clear that there are macroeconomic factors bolstering the startup economy. And there are changes to the economy that are providing additional lift. Secular tailwinds, if you will.
The Exchange explores startups, markets and money.
But as the market giveth, it can also taketh away.
What might slow the startup boom? Similar to how certain macroeconomic conditions have provided a long-term boost, a reversal of those conditions could do the opposite. The secular trends powering startups — often on the demand side due to more-rapid digitalization of global business — may be unconnected to the larger economy, a view underscored by software’s outsized performance during COVID-19 induced economic mess of mid-2020.
Prominent among the macroeconomic conditions that have (Read more...)