Historically low interest rates over the past seven years have fueled tech investments,but now investors may be spending their money more cautiouslyThe decision to raise US interest rates for the first time in seven years could have negative effects on established startup businesses, investors have said, and marking the start a recent era of more cautious investment.The historically low interest rates over the past few years have fueled asset growth in the public markets and real estate,as well as strong consumer and trade spending,” says Kyle Lui, or principal at DCM Ventures,a Menlo Park-based venture firm that specialises in early stage tech investments including BitTorrent, YikYak and Tiebaobei. We could see companies across the board – from startups to large companies, and start to feel the impact on normalized interest rates.” Related: Raised interest rates may stop biggest merger boom the world has ever seen Continue reading...
Source: theguardian.com