This is an interesting article detailing how the global market is hurting entrepreneurs and tech companies that are trying to find venture capital funding. As the market continues to tumble, many investors are wondering if Silicon Valley is overpriced. If determined to be so, expect a decline in technology company stocks and a tightening of lending to start-ups.
Investors and entrepreneurs celebrated success at the ninth annual Crunchies Awards in San Francisco. But irrational exuberance was in short supply at the end of a day, when Zenefits, nominated in the fastest rising start-up category, announced an executive reorganization.
The Valley is in the midst of a correction, and that is a good thing, said insiders. It has become harder to raise money, terms like “cash-flow positive” and “sustainable growth” are coming into fashion, and venture capitalists are doing something they haven’t done in years — they’re saying “no.”
http://www.cnbc.com/2016/02/09/silicon-valleys-reality-the-party-is-over.html
It is interesting that start-ups in Silicon Valley are having trouble obtaining funding. Opportunity entrepreneurship likely to decline with only the best start-ups having the ability to get funding.
I wonder what else is causing this besides recent turbulence in public markets. This has happened before and we haven’t seen these consequences so it makes me think there must be more going on. I also wonder how long this trend is likely to continue for. If the party is really “over” or if it’s just on pause.