Changing Market Landscape

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Hey Growers 🌱

The world has felt so dynamic.

War erupting in Europe, Musk buying Twitter, rampant inflation, markets crashing.

Feels like everything is changing right in front of us.

It’s hard to process it all.

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Our Institutions Are Failing

Something I’ve been thinking a lot about is how Elon Musk holds more power than Joe Biden. How Joe Rogan, Bari Weiss, and other creators hold more power than traditional media institutions.

How the dollar is weakening and crypto continues to grow in strength (albeit a recent market hiccup).

Covid really helped accelerate these changes.

Now, there seems to be a new world order emerging.

We are moving away from our old traditional institutions like government, universities, media, the U.S. dollar, and moving toward oligarchs, the internet, and crypto.

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Market Crash

At the end of Q4, a few sophisticated people were speculating an upcoming crash and a recorrecting of valuations.

With rising interest rates and companies not being able to grow into their valuations, tech/growth stocks started to get crushed.

Layoffs have recently hit the tech sector hard at places like Klarna, Cameo, Netflix amongst many others. While other major companies like Snapchat have frozen hirings.

The market has corrected to reason, but nobody seems certain and willing to buy.

The economy is strong, but the market is a forward indicator. So perhaps the economy is in for a reckoning soon. Especially with these layoffs.

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Private Markets

Growth stage to mid-stage private companies are seeing their valuations decrease. But not as much as public co’s. They should be decreased more.

Lots of companies will do down-rounds, do layoffs, and file for bankruptcies.

Funding will dry up and it will only remain for the best companies.

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Healthy Correction

Lots of bullshit startups were getting funded the past few years.

Web 3.0 companies with just slide decks and a $100M valuations.

Crossover investors swimming upstream and increasing private valuations to insane multiples. Public market investors then chomping at the bit and increasing these valuations even more…

What happened was our markets over-valued software.

We will see an increase of value placed on things built in the physical world to solve real problems.

I am excited about startups fighting climate change, rethinking manufacturing, logistics, robotics, and health.

Dollars will flow to real things and not just SaaS companies.

This is good.

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Thank you for reading! 🌱

Aidan

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