The end of Tech Bubble 2.0
A year ago, startups with nascent business models were scoring billion-dollar valuations as investors raced each other to write checks. Today, venture capital is drying up for less successful startups. Investors, eyeing collapsing tech stocks and economic sloth, are culling their portfolios and forcing cash-starved companies to retrench or shut down. Rory O’Driscoll, a partner with venture firm Scale Venture Partners, likens the mood today to the moment after the Titanic hit an iceberg. “No one wanted to jump into the lifeboats right away,” he said. Some hesitated. The smart companies are cutting expenses and raising capital if they can. “You’ve got to make a quick decision now.” Of the 48 venture-funded U.S. tech companies that went public since 2014, 35 now trade below their initial public offering prices, according to a Wall Street Journal analysis. Read the full story: (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise