Valuation Recession Possibly Coming Soon
Reading this piece on TechCrunch is a good indicator that market correction may not be too far ahead. Yes, valuation recession may be here. Everyone should prepare because the indicators are evident that huge market corrections may happen from next year. The exuberance is largely fading as ‘amazing” companies like Uber and Lyft continue to struggle in public markets.
Now, with the We Company delaying its listing, and with Uber and Lyft solidly underperforming in their first year as public companies, we may finally be reaching a long-awaited moment of reckoning.
After years of rapid value growth in the tech world, spurred in part by venture capital firms placing sky-high valuations on their portfolio companies as ever-more cash was piled into them, perhaps the tsunami has finally hit land. If so, it’s not going to be pretty and there may be more to come. Perhaps it’s time to relearn the lesson that greed may not actually be good.