American billionaire Doug Lyon does not believe that the wreckage of technology companies will disappear soon, as he gave partner Sequoia Capital, Gloomy outlook for the global economy, warning that the current economic downturn It will be worse than the recession of 2000 and 2008.
“I think the situation today is more difficult and more challenging than 2008, which was really a crisis for the financial sector, or even 2000, which was a technical crisis par excellence,” Lyon said at the Slush startup conference in Helsinki.
He explained that the increasing interest rates around the world, the depletion of consumer money globally, as well as the energy crisis and geopolitical challenges, all together constitute a bleak picture of the economy, according to what was reported by “CNBC” network, and viewed by “Al Arabiya.net”.
He added that after all this, technology stocks fell rapidly, and the Nasdaq Composite Index has fallen by nearly 30% since the beginning of the year, and it is facing a sharper decline than the decline in the Dow Jones Industrial Average or the Standard & Poor’s 500, while the valuations of emerging companies such as Stripe and Klarna have collapsed.
As a result, Leon said, startup founders are warning their peers that it’s time to rein in costs and focus on the essentials.
He said he did not expect the tech companies’ valuations to recover until at least 2024.
He added, “My expectation is that we will not get away from this very quickly, and the recession in the seventies may be the closest picture to our current reality, and even if the situation is like the year 2000, a number of public companies will not recover for 10 years.”