The VC market is super frothy at the moment.

That drives up valuations in the short term and results in a very easy time to raise capital (aka Gold Rush). However what follows is a period where the market will turn the screws really hard on companies to show they have a viable and economically justifiable business or they’ll get washed out real quick.

We’re not in a bubble like dot com but it will get very uncomfortable for companies that don’t have a clear path to self-sustaining economics.