There are losses for hedge fund investors with large public portfolios at high-cost bases. An early-stage company whose public holdings fall 25% in value feels less pressure than a crossover firm when its portfolio falls from an 8X multiple-of-money to a 6X multiple-of-money. Public securities of such firms are underwater, and private holdings are ... See more

Valuations will get reset. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds.

As hard as it is to fundraise during down cycles, economic downturns can make other parts of the process easier or cheaper—at least in theory. When times are tough, companies might find it easier to hire new college graduates or talented people who got laid off from other companies, compared to boom times, when everyone is competing for talent. Man

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