Fintech is not immune to the macro environment, and unless you live in blissful ignorance of the markets, you'll notice some macro turmoil. Higher inflation leads to higher interest rates, which is bad news for anyone with a variable-rate pledged loan, but good news for the banks that make money from the loans. This is also bad news for startups for four reasons: 1. the discount rate used in the NPV risk valuation model is tied to interest rates 2. private equity investors get worried when public market equities fall and negotiate harder, at least based on lower public market comparables. 3. If interest rates rise, investors have other options such as bonds. 4. rising interest rates lead to fears of a recession, which hurts all companies. Will the market suffer a long, slow puncture? This has happened before, but the recent crash led to a buy-low mentality; a prolonged slow puncture will kill the buy-low mentality.

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