I recently attended a board meeting where one of the topics was the Federal Reserve’s interest rate policies. We discussed how the Fed is very much focused on controlling inflation, and are far less concerned about avoiding a recession. Naturally, our discussion extended to what the Federal Reserve’s policy setting will mean for startups. One particular area of concern among these Board members is how the Fed’s policies may impact minimum viable products (MVPs), product launches, sales activities, annual contract value (ACV), etc. For example, when the Fed raises interest rates, that increases the incentives for startups’ customers and prospects to save and reduces the incentives to consume, which – depending on the industry – may lead to a reduction in purchasing activity.
Economics Isn’t Esoteric for Startups
Economics Isn’t Esoteric for Startups
Economics Isn’t Esoteric for Startups
I recently attended a board meeting where one of the topics was the Federal Reserve’s interest rate policies. We discussed how the Fed is very much focused on controlling inflation, and are far less concerned about avoiding a recession. Naturally, our discussion extended to what the Federal Reserve’s policy setting will mean for startups. One particular area of concern among these Board members is how the Fed’s policies may impact minimum viable products (MVPs), product launches, sales activities, annual contract value (ACV), etc. For example, when the Fed raises interest rates, that increases the incentives for startups’ customers and prospects to save and reduces the incentives to consume, which – depending on the industry – may lead to a reduction in purchasing activity.