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148 sats \ 2 replies \ @SimpleStacker 23h \ parent \ on: Startup Winter: Hacker News Lost Its Faith tech
This makes sense though. Rising interest rates usually mean investors want ROI now and are less willing to accept money which is uncertainly promised in the future.
Many of us here on SN identify unproductive companies sustained for years by low interest rates as ZIRPs (zero interest rate phenomena): #296154
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0 sats \ 1 reply \ @south_korea_ln 23h
That's interesting. Never heard of ZIRPs. So did most of the predictions from that 2023 thread come true? Or are they all still around?
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0 sats \ 0 replies \ @SimpleStacker 23h
Looking back on the thread, it seems like it was more focused on practices than specific companies. But yeah, I've also heard ZIRP used to reference companies that are unprofitable for a long time, sustained only because interest rates are so low and capital was so easily available.
I can't remember if it was Warren Buffet or someone else who said it, but they compared rising interest rates like the tide going out, and then you get to see "who's naked" under the water
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