Is it time for wealthy tech investors to take a time out?

World

Is it time for wealthy tech investors to take a time out?

The tech stocks bloodbath will have consequences. After a decade of minting money, VCs may decide it’s time to relax

Chris Bryant

The bloodbath in the frothiest corners of financial markets may have some venture capitalists wondering if it’s time to walk away.

While it’s too early to say the good times are over — tech stocks rebounded strongly at the start of this week —  there’s bound to be some sort of reckoning for start-ups. Landing a high-priced exit may get harder for their financial backers. Some may reflect it’s not worth the effort and head off to the beach — embracing a flavour of the “lie flat” philosophy of Chinese millennials who are opting out of the rat race. Don’t take my word for it. Here’s Miami-based venture capitalist Keith Rabois’s assessment in the wake of recent market mayhem.

VCs could certainly use a break. Total funding for start-ups doubled to almost $160bn (R2.5-trillion) in the third quarter, compared to the same period a year ago, according to data provider CB Insights. ..

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