This Week in Startups Interest rates, inflation and “getting fit” with Brad Gerstner | E1639
9 snips
Dec 16, 2022 
Brad Gerstner, Founder and CEO of Altimeter Capital, shares his insights on the current economic landscape, tackling issues like interest rates and inflation. He discusses what it means to be founder-friendly and highlights which tech giants like Google and Meta are fit for today's challenges. Gerstner critiques the Fed's approach to stability and explores the implications of stock compensation models in tech. His perspective on the need for transparency and adaptability in leadership offers valuable takeaways for entrepreneurs navigating turbulent times.
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Impact of Interest Rates
- Multiples for companies move inversely to interest rates.
- Rising interest rates caused a significant drop in multiples, impacting all risk assets.
Austerity Measures
- Companies are making cuts across various areas, from software subscriptions to personnel.
- This cost-cutting is a response to a predicted white-collar recession.
Elkhart, Indiana Example
- Elkhart, Indiana's RV industry, a historical economic bellwether, is experiencing a slowdown.
- This mirrors a broader economic downturn affecting various sectors beyond tech.