History rhyming, pt2

TechStars has decided to restart its canceled Stockholm cohort, but will close the business once the program is done. Good for the companies involved, but I see the closure as another sign of the boom coming to an end.

History is said not to repeat, but to rhyme. To me this feels more like 2000-2002 than 2008-2009, with a combination of startup specific financial challenges (as a result of very high valuations from Series A to the largest companies on the Nasdaq culminating in 2021) and a general economic downturn.

If I would have to guess, this means it will take more than 2023 for most venture capital-backed startups to work through their challenges and find their balance in the new financial situation. Plan for continued tough times, work really hard to make them good times.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

Leave a Reply