• bionicjoey
    link
    fedilink
    arrow-up
    3
    ·
    11 months ago

    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.

    • HobbitFoot @thelemmy.club
      link
      fedilink
      English
      arrow-up
      3
      arrow-down
      1
      ·
      11 months ago

      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.

      • bionicjoey
        link
        fedilink
        arrow-up
        2
        ·
        11 months ago

        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