After the longest bull market run in history, investors are bracing for an impending economic downturn. The global economy may weaken to its slowest growth rate since the 2008 financial crisis and get “stuck in a long period of low growth,” the OECD has warned. Other organizations, such as the IMF and the UN Conference on Trade and Development, have voiced similarly bearish sentiments.
In Indonesia, VCs and other startup investors are warning about a downturn as well. Tech companies would find it “challenging” to raise funding the next two years, Raditya Pramana, Partner at Venturra Discovery, told a panel discussion at BLOCK71 Jakarta.
“Not that there’s no money out there, but what will be corrected is valuation,” he said, referring to a move away from the massive valuations that defined the last decade. “Investors will be more stringent when selecting companies.”
WeWork, he said, is a classic case of a “mis-priced”