Noted investor Mark Suster shared his two cents on the latest market drops and the effects on venture financing in the near and long-term future. As uncertainty remains regarding the interest rate, Suster believes VCs will take their time with investment decisions and won't move too quick to make follow-on financing, as LPs may question placing their capital in VC hands till things weigh out. The result could mean a hindering impact for later stage financing.
The reason to watch the market is that it impacts you. If you’re an entrepreneur and the markets continue to drop steadily over the next 30 days please ignore any advice that this doesn’t impact you – it does. Be aware of your fund-raising calendar and timeframes and keep valuations relative to times-to-raise in mind. If you’re cashflow positive – the markets still affect you. They affect consumer spending. They affect business spending.