Mon, Mar 07, 2016

The Current State of Venture Funding

The Wall Street Journal summarizes the current situation on venture funding in an article titled ”Venture Capitalists Pay Less to Invest in High-Tech Firms” as:

“For the first time since the boom in venture capital began five years ago, prices are falling in all stages of high-technology finance. Venture money is still abundant, and the private market value of some young companies are continuing to rise. Overall, however, venture investors are paying 20% less for deals than a year ago; for companies that haven’t lived up to their promise, prices are off by 50% or more.”

This message is consistent with what we are hearing and seeing in the market.

Remarkably the article was published on May 4th, 1984.

As Carl Sagan said: “You have to know the past to understand the present.”

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