The investment world is a world where gamblers can risk all they have in the bank and wind up super rich. Stories of angel investors looking for startups that have the potential to make investors rich usually include a story or two about Shervin Pishevar. Shervin Pishevar hit the jackpot when he worked for Menlo Ventures. When Uber was looking for funding in Silicon Valley, Pishevar thought the new taxi service made sense, so he invested $21 million in the startup. His Menlo Ventures partners are still celebrating that win.
Shervin Pishevar has a solid reputation in Silicon Valley. His list of startups wins include Airbnb, Warby Parker, Tumblr, and Postmates, so Pishevar has a loyal following on Twitter. People want to know what’s next in the startup world, and Shervin seems to have a sixth sense when it comes to investing.
But when Shervin Pishevar went on a 21-hour tweetstorm, investors thought Pishevar was still licking his resignation wounds. Shervin resigned from Investment company, the venture capital firm he started in 2017. But his March 2018 tweetstorm wasn’t about his resignation. Shervin Pishevar was sending warning tweets to his fellow investors. According to Pishevar, all asset classes have too much overvalued air in them. But investors didn’t care about that overvalued air until the stock market experienced the third worst one-point drop in market history in November 2018.
Investors see now what Shervin Pishevar saw months ago. Trump’s trade war with China, rising interest rates, a weak global economy, a fumbled Brexit deal, and inflation are finally coming together to create a perfect storm in the investment world. And there’s no place to run, according to Pishevar. The bond market won’t help them ride out the recession Shervin sees coming. And according to a Shervin tweet, the Bitcoin market won’t help them maintain their investment strength either.
According to Mr. Pishevar, 2019 won’t be the year startups run to Silicon Valley for funding. Other areas of the world offer startups a better path to success these days, according to Shervin. But despite the trouble facing investors in 2019, Pishevar still thinks investors will have a good year if they stick the basics of investing. Investors should temper their expectations and ride out the downturn in 2019.