Profitable tech companies have to maintain their existing businesses, but development of new businesses is likely to stay low and unprofitable businesses are still scrambling to hit profitability before bankruptcy.
It does depend on interest rates to some extent. For the past decade, the prevailing wisdom of the software industry has been to pour money into unprofitable ventures with the hope of getting profitable later. In the past year, austerity measures like heightened interest rates have made it so VCs are more interested in money now instead of money later.
Pulling back from investments is definitely related to the increased interest rate, but there really isn’t any government austerity in the federal government at the moment.
I’m hopeful that government austerity measures ease up before that happens too much. There have already been so many layoffs.
Layoffs may continue.
Profitable tech companies have to maintain their existing businesses, but development of new businesses is likely to stay low and unprofitable businesses are still scrambling to hit profitability before bankruptcy.
It does depend on interest rates to some extent. For the past decade, the prevailing wisdom of the software industry has been to pour money into unprofitable ventures with the hope of getting profitable later. In the past year, austerity measures like heightened interest rates have made it so VCs are more interested in money now instead of money later.
Pulling back from investments is definitely related to the increased interest rate, but there really isn’t any government austerity in the federal government at the moment.
I suppose that depends on which country you’re in… I’m in Canada and we’re going into an election year. Everything is getting slashed or frozen