The Supercharger Boosting Startupland Fundraising and Exits by @ttunguz
One of the biggest changes in the last year in the US is the Fedâ€™s stated low interest rate policy for the next three years. If the government lends at a low rate, then the cost of capital is less, so companies should be able to invest more at the same cost, and grow faster. And prices of all exits (IPOs, buyouts, and M&A) have all increased with IPOs seeing the most appreciation. For founders and investors, a low rate policy charges an already frenzied environment further. Prices are higher, investment rounds larger, exits more valuable.