So here is how Silicon Valley tech works…
(I’m in Silicon Valley tech)
When interest rates are low, debt is basically free and tech goes wild. Companies talk in terms of burn rate, late stage funding, and unicorns. We have bean bag chairs, ping pong tables, and free company cafeterias. We invent stuff and then convince you that you cannot live without it. We’re also encouraged to eat breakfast, lunch, and dinner at the office and compete over who takes the least vacation per year. Vacation is weakness. People have million dollar mortgages and take their kids’ Ritalin so they can be awake working longer.
When interest rates are high, tech has to compete for funding. You have to actually make money or die. Tech has been a bloodbath and in a recession for months. It’s coming to Main Street soon.
For every tech company you know, 20 went bankrupt. It’s the modern day gold rush.