Dotcom bust all over again, but bigger after 13 years of money printing.

Dotcom bust all over again, but bigger after 13 years of money printing.
As IPOs Kathoomph, Exit Doors Close with Big Implications for the Broader Startup Scene
By Wolf Richter for WOLF STREET.• May 1, 2022

The “13-year amazing bull market run” was powered by waves of QE and by interest rate repression. QE has ended. Interest rates have started to rise. And QT, the opposite of QE, will be announced this week and start in May or June. It’s a different ballgame now.

IPOs can still happen, and can still succeed, but now the companies need to have real potential, real revenues, and the valuations will be a lot lower. Hype-and-hoopla stocks will get shookalacked.

But with the exits closing for investors in startups, fresh money flowing into these companies is getting scarcer, as investors are getting pickier and more prudent, and a bevy of startups will run out of funding, and then that’s it for them.

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https://wolfstreet.com/2022/05/01/as-ipos-kathoomph-exit-doors-close-with-big-implications-for-the-broader-startup-scene/

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