Stripe co-founder says high interest rates flushed out Silicon Valley's ‘wackiest' ideas

John Collison, president and co-founder of Stripe, claims that the end of zero interest-rate policy has had a positive impact on Silicon Valley. He argues that higher rates have weeded out unnecessary startup ideas and allowed worthwhile companies to get funded. Collison believes that the period of extremely low interest rates was unhealthy for the industry. He highlights how rising interest rates have affected tech valuations, leading Stripe to reduce its valuation from $95 billion to $50 billion. Despite this, Collison states that Stripe’s business is thriving, with the company processing $1 trillion in transactions in 2023.