“Companies that were at high valuations went down 50, 60, 70, or 80%.”
Tal Barnoach, General Partner at Disruptive Technologies, discussed the current state of the market and how that impacts early-stage investments in Startup Nation
“If you look at the market now, obviously the public market is suffering,” explained Tal Barnoach, General Partner at Disruptive Technologies. Barnoach joined CTech at Meet&Tech to discuss the firm, which invests in early-stage technologies that are combined with AI.
“Shares are going down, and companies that were at high valuations went down 50, 60, 70, or 80%. The markets have changed,” he continued. Despite this, Barnoach argued that the biggest impact is felt at the unicorn and ‘soonicorn’ stage, and not at the early stages of the tech ecosystem. “On the Seed stage, what we feel is that there is no big change. Maybe the valuations of those companies will go down a little bit, but this is it… There is a lot of money out there, and this money should be invested. It mostly will be invested in early-stage and not in the growth stage. It is more for us now to come to find the best companies at lower valuations than they used to be.
You can see the entire exchange in the video above.