June by D’Ornano + Co.: a proposed framework for assessing the intrinsic value of foundational tech business models, decomposing the GenAI tech stack and an expected revival of the IPO market?

This is our monthly newsletter dedicated to Tech x Investments.

Dear all,

It has been a little over one year since the Fed started increasing interest rates in May 2022, and what a wild year it has been for investors across the private and public markets. I had the privilege of attending three global conferences over the last two months – Milken, Scale Global and just last week SuperReturn Berlin – and this was a terrific opportunity to take a much-needed helicopter view of the new paradigm we are facing and explore with bright minds how to play as an investor a new game with new rules. If the seismic shift is general, one sector has been hit hard: Technology.

Yes, for the first time in a decade, macro matters to tech, and for those unprofitable companies whose earnings lie in the future, the continued increase of interest rates since last year has led to a steep decline in valuations in the public markets. The combination of rising interest rates and faltering public stocks have now filtered through the private markets, yet still only partially ref…