From Fortune Magazine:

A dramatic shift in investor sentiment is putting pressure on the “zero interest-rate babies” (ZIRBs), or startups born in an era of low interest rates and cheap capital. Now, these fledgling companies must mature and learn to fly or face failure. The future of high-growth tech has 7.3% of the U.S. GDP. They need to analyze aspects of revenue, growth, margins, and resilience to fly in their new environment. A critical element is the actual recurrence of the growth and the feed of the customer base. This leads to the strength in customer and user’s economics, as well as how much revenue is reoccurring for non-Saas companies. A critical foundation for growth needs to be created, grounded in the existing customer base. There is also the need for strong gross (or contribution) margins that can support a sustainable cost structure.ودOnly by answering critical questions, can investors accurately assess the prospects and viability of a high-growth tech company who will discover weaknesses over the coming months and high profile failures.



Read more: Zero interest-rate babies are facing their day of reckoning. It’s time this generation of startups learns how to fly