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Start-up investor Lawrence takes a ruthless stance against her industry

Start-up investor Lawrence takes a ruthless stance against her industry

Insane valuations despite questionable business models: There has always been a lot of glossing over in the start-up industry, criticizes investor Madeline Lawrence.

by Niklas Wirminghaus

This article is a take on Capital+, Capital’s premium digital offering. For you as star It is available exclusively to PLUS subscribers here for ten days. It will then be available again exclusively for Capital+ subscribers at . The business magazine Capital is like that star to RTL Germany.

Rounds of layoffs, shrunken valuations, bankruptcies: Is the start-up scene in crisis, Ms. Lawrence?
No. In individual cases this is unfortunate for those involved, especially for the employees affected. But what we are seeing is essentially a market correction of the unprecedented excesses of recent years.

Where did these exaggerations come from?
In times of zero interest rate policy, money was essentially free. It was incredibly easy to raise capital for venture capital funds because fund investors had few attractive alternatives due to low interest rates. Many new venture capital companies came onto the market and the funds were full to the brim. And the market for takeovers and IPOs was hot.

Source: Stern

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