• quarrk [he/him]
    ·
    1 year ago

    Free VC tech money has dried up

    Maybe related to the Fed raising interest rates?

    • PorkrollPosadist [he/him, they/them]
      ·
      1 year ago

      Correct. When you're paying no interest, you just take out loans and plow them into anything and everything. Crypto, Timeshares on future Mars colonies, you name it. When you actually have to pay interest on the loans, it suddenly becomes very expensive to run this enormous corporate and technical infrastructure with no realized profits.