Fed’s 2022 Tightening Ends Venture Excess, Clearing Path for Real Innovation After Years of Easy Money

After years of easy money and inflated venture activity that rewarded hype over substance, the Fed’s tightening since early 2022 ended the era of abundant capital and speculative startup excess, paving the way for more disciplined, real innovation. The author argues the prior cycle largely wasted opportunity on trivial fads and poor capital allocation, and that stricter conditions will restore healthier risk awareness for founders and investors.