Now the tide of money into the tech sector is ebbing, we can see who has no bathers on

theguardian.com:

Tech companies and their bank of choice are in crisis: there have been widespread layoffs, and Silicon Valley Bank (SVB) recently collapsed. So what went wrong?

Let’s start with tech companies. There are at least two types: “new tech” and “old tech”. The new-tech companies are usually small and dynamic, and their funding mix is predominantly made up of private capital (typically venture capital or angel investors). Conversely, old-tech companies have a more interesting mix of equity and debt to fund their activity – and therefore a more complex relationship with financial markets and institutions. This is partially down to the different levels of risk of the two asset classes, which also drives their different accessibility to retail investors.

All this said, there is little doubt that increases in interest rates after a prolonged period of quantitative easing have affected market expectations and liquidity, driving down companies’ valuations across all sectors. It is also true that the technology sector, which benefited from the most aggressive growth just before and during the pandemic, has been particularly badly hit.

Nonetheless, while old-tech companies have suffered through the usual transmission channels of monetary policy – such as dried liquidity, the downturn of aggregate demand and the new challenges of a post-globalised world, including supply-chain management – new-tech ones have run across their own problems.

Higher interest rates for them have meant something like a natural selection process. There is more competition for private capital funds and the run to “safe havens” during downturns,as well as increased financial challenges for startups that are not yet profitable.

Under this intense financial pressure,