To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here. Are startup valuations about to fall? Hello, friends! Alex here to talk to you for a hot second about money. Then we’ll get into startups, venture capital, what Big Tech is up to and more. I promise. But hang with me for a moment. Tech stocks got hammered today: The tech-heavy Nasdaq fell by more than 2%. Cloud stocks endured twice the damage. What happened? The U.S. government said that it might raise interest rates. So what? Well, when rates were low, lots of money that might have been invested elsewhere was instead funneled into tech stocks and VC funds that invest in startups. Now, with the government saying that it might shake up the current state of affairs, investors are responding by selling tech stocks. Bessemer Venture Partners investor Byron Deeter noted the drop, tweeting that after a “brutal few days in the clouds,” with software stocks off “~5% today and ~10% on the week,” he was curious if valuations are “just taking a breather after a massive 2020” or starting “a broader reset.” That’s a great question. More on the underlying economics of the situation here and here. Now, into startup-land. Twitter dou… Click below to read the full story from TechCrunch
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The Daily Crunch: Tech stocks hammered after US Treasury Secretary speculates on hiking interest rates
