Finance
Fed Rates and Tech Valuations: A Short Primer
How rate expectations affect growth multiples and what that means for fundraising and runway.
When rates rise, the present value of future cash flows drops. For high-growth tech, that often means compressed multiples and a tougher fundraising environment. When rates ease, risk appetite tends to return.
**What we tell our clients** - Runway and path to profitability matter more when capital is expensive. We design for efficiency and clear milestones. - Product and engineering decisions—build vs. buy, scale vs. optimize—should reflect where you are in the cycle.
We're not financial advisors, but we help technical leaders connect the dots between macro, runway, and what gets built next.