Bridgewater Founder: Silicon Valley Bank's collapse will have knock-on effects in venture capital

Ray Dalio, founder of Bridgewater Fund, published his views on the collapse of Silicon Valley banks on social media, saying that the banking turmoil is "a very typical event in the bubble burst stage of the short-term debt cycle." He also said that this cycle lasts about seven years. At the current stage, the slowdown in inflation and credit growth will catalyze the contraction of debt and spread it until the Fed resumes loose monetary policy. With the Fed likely to continue raising interest rates in the future, expect more "dominos" to fall, Dalio said. In Dalio's understanding, the bank's collapse was an early sign of a "canary in the coal mine" that would have knock-on effects in the venture capital world, and beyond.