How will inflation change fundraising?

Question

Raising large equity rounds may no longer work in inflationary times as inflation will consume part of the funds, which will dilute shareholders of earlier rounds more than normal. New investors may appreciate the extra participation they gain and not want to change, but when inflation raises high enough, the current fundraising model will collapse. What can we do?

muzani · Accepted Answer

Y Combinator started with $10k investments, now $120k because inflation. But lately it is becoming a little high, compared to China and so on.IMO, later stage VCs give money more for ammunition and scale up and down with the economy. It's seed funding that's most affected.

giantg2 · Answer

With interest rates being low, the return on equities is still attractive.

cpach · Answer

Is there even any significant amount of inflation occurring&hellip;?

How will inflation change fundraising?

Y Combinator started with $10k investments, now $120k because inflation. But lately it is becoming a little high, compared to China and so on.
IMO, later stage VCs give money more for ammunition and scale up and down with the economy. It's seed funding that's most affected.

With interest rates being low, the return on equities is still attractive.

Is there even any significant amount of inflation occurring…?