Sequoia Capital Global Managing Partner Doug Leone speaks on stage during Day 2 of TechCrunch Disrupt SF 2018 at Moscone Center on September 6, 2018 in San Francisco, California.

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HELSINKI, Finland — American venture capitalist Doug Leone doesn’t think the tech crash will end anytime soon.

A partner at Sequoia Capital gave a gloomy forecast for the global economy, warning that today’s downturn was worse than the recessions of 2000 and 2008.

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“The situation today is, I think, more complicated and complex than either 2008, which was really a hedged financial services crisis, or 2000, which was a hedged technology crisis,” Leone said, speaking on stage at the Slush startup conference in Helsinki.

“We have a global crisis here. We have rising interest rates around the world, consumers around the world are starting to run out of money, we have an energy crisis, and then we have all the issues of geopolitical challenges.”

Tech leaders and investors were forced to reckon with rising interest rates and deteriorating macroeconomic conditions.

As central banks raise rates and reverse pandemic-era monetary easing, high-growth technology stocks have slumped.

The Nasdaq Composite is down nearly 30% year-to-date, facing steeper declines than the Dow Jones Industrial Average or the S&P 500.

This has affected private companies, with valuations of companies such as Stripe and Klarna falling.

As a result, startup founders are warning their peers that it’s time to rein in spending and focus on the basics.

“Best Lessons You’ll Ever Learn”

“Think about what’s happened in the last two or three years: Everything you’ve done has been rewarded by some investor because of a lot of capital,” Leone said.

“You were rewarded no matter what — you made a stupid decision, you got paid; you made a good decision, you got paid, this is a bad way for you to learn a skill. went.”

“What you’re going to learn now are the best lessons you could ever learn, even in our business,” he added.

Leone said he doesn’t expect tech company valuations to recover until at least 2024.

“My prediction is that we’re not going to get away from it very soon,” Leone said. “If you go back to the 70s, the disease was 16 years old. Even if you go back to 2000, a number of state-owned companies did not recover for 10 years.”

He added: “I think we have to be prepared for a long period of time where we’re going to see … consumers running out of money, demand going down, tech companies’ budgets going down.”

In private markets, early-stage companies will be less affected than later-stage firms, which are more sensitive to movements in public markets, Leone said.

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