entrepreneurs in addition to concern about the development of the industry, the financial aspects of the dynamic should also attach importance to. This year, the Fed raised interest rates on a number of occasions that the venture capital companies or will encounter financing problems, no doubt in this entrepreneurial winter worse.
12 17, the "Wall Street journal" columnist Rolfe Winkler wrote Wednesday; Wednesday, the Fed rate hike will not have an immediate impact on the valuation of start-up companies, but it may make the venture financing becomes more difficult than before.
with stocks, bonds and real estate and other capital markets, the risk of investment in these years has benefited from the zero interest rate policy. In recent years, a number of endowments, foundations and family financial rooms have entered the field of venture capital, and mutual funds, hedge funds and large banks are favored startups, in order to seek a more generous return. As a result of strong capital, start-up companies in the business community has a strong influence.
"trend is not because 0.25% of the interest rate change, but because the original price is wrong, even before any rate hikes." Scale Venture Partners partner Rory O ‘Driscoll representation.