6.6 C
London
Wednesday, November 30, 2022

The startup and venture markets are back to square one • londonbusinessblog.com

Must read

House ‘A Christmas Story’ for sale

IE 11 is not supported. For an optimal experience, please visit our site in a different browser.NEXT ONECongress races to intervene to prevent...

Iterative Launches Its Second Fund for Southeast Asia Startups • londonbusinessblog.com

Despite global headwinds, startups in Southeast Asia are still going strong, say the founders of Iterative capital. The Singapore-based venture capital firm, which...

How a $40 investment changed Luke Cook’s life and the 5 things his new startup, Cuppa, taught him

It's not often I sit back and acknowledge how far I've come in the past 2.5 years. I've grown as a person, met some incredible...

The iPhone 14 Pro and 14 Pro Max may be in short supply during the holiday season

Workers at the massive Foxconn facility have reportedly been forced to live on site in an effort to contain a covid outbreak. Protests...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

What goes up must come down’ is a cliché that is also a corruption of Newton’s third law. It’s also a good reminder that when it seems like the business market has fundamentally changed, we often see only a temporary deviation.

This idiom makes sense when looking at the cycle of technical valuations (up and then down), venture capital (up and then down), and the rate at which new unicorns are minted (also up and then down). These three trends are of course interrelated, but what made us pause recently was the realization that we haven’t just seen declines in recent quarters: instead, there has been a full return to pre-COVID standards.


The Exchange explores startups, markets and money.

Read it every morning on londonbusinessblog.com+ or get The Exchange’s newsletter every Saturday.


Take technical valuations, for example: we noticed this morning while drafting the weekly kick-off Equity episode that the value of technology stocks – measured by our favorite software company tracking index – is trading today around the value it had at the beginning of 2020, just before and after the massive COVID-induced sell-off that hit US stocks:

Excuse our annotation method – it’s Monday.

Clearly, the software valuation boom in 2020-2021 was more of an anomaly than a new norm. In addition, the fact that the companies in the index have grown in recent years but are worth less today means that they may have been overvalued even before the corona crisis. If today’s prices hold up, they will denounce not only the excesses of the recent past, but also the overvaluations of the 2010s.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

House ‘A Christmas Story’ for sale

IE 11 is not supported. For an optimal experience, please visit our site in a different browser.NEXT ONECongress races to intervene to prevent...

Iterative Launches Its Second Fund for Southeast Asia Startups • londonbusinessblog.com

Despite global headwinds, startups in Southeast Asia are still going strong, say the founders of Iterative capital. The Singapore-based venture capital firm, which...

How a $40 investment changed Luke Cook’s life and the 5 things his new startup, Cuppa, taught him

It's not often I sit back and acknowledge how far I've come in the past 2.5 years. I've grown as a person, met some incredible...

The iPhone 14 Pro and 14 Pro Max may be in short supply during the holiday season

Workers at the massive Foxconn facility have reportedly been forced to live on site in an effort to contain a covid outbreak. Protests...

Austin-based ICON awarded $57.2 million NASA contract for lunar construction technology londonbusinessblog.com

ICONa construction engineering company that has raised more than $400 million in funding has won a new contract from NASA to develop new systems...