[mattbrewsbytes]

I think what we don't see talked about is the avoidance of continuing to take on debt when interest rates are much higher than in recent past. Companies can issue bonds to raise money instead of loans but both are based on interest rates.

Companies pulling back on growth investments will help their bottom line sooner. For tech companies their greatest cost is employees which also is where they invest for more growth in new products/services.

Cash flow is king when interest rates are high.

[hef19898]

Cash flow is always king, as positive cash flow is what keeps a company default alive like forever, or rather as long as cash flow is positive.

And yes, I think high interest rates play role. Either because credit lines become more expensive or because investor and VC money is harder to come by.