With the threatening global economic condition that overshadows the tech industry, keeping one’s optimism is not an easy feat. This, which also stems from the COVID-19 pandemic, has resulted in multiple layoffs within the tech industry, both globally and domestically.
However, the US tech industry sees it in a different light as interest rates are relatively higher. This signifies that liquidity is high, and the “price” to earn money is ‘cheaper.’
“[There is] an abundance of liquidity and supply of capital. People would want to ask, ‘what is the next big thing’ – What am I supposed to invest in?” said Roderick Purwana, Managing Partner at East Ventures, in the ‘A Look Ahead and Beyond’ panel at Fortune Indonesia Summit 2023.
The States are adjusting the standard interest, lowering liquidity, and hence, money becomes ‘expensive.’
Many people would think, “Instead of investing in tech companies that are yet to be profitable, or generally companies with lower growth rates, I would very much rather invest in other companies. This way, there will be a change.”
Roderick also revealed that investors are becoming more selective about tech startups, especially regarding risks and valuations. Hence, business players must keep their agility in finding the silver lining and seize opportunities to survive the recession threat, yet maintain the company’s growth.
Read more about East Ventures’ 2023 outlook here.
This article is a summary of two articles. Read the original articles at Fortune Indonesia and Kompas TV.