These are the people who say, forcing some entrepreneurs looking for financing "bridge", or cut their requirements of the valuations.
The operation of the silicon valley AngelList website entrepreneurs and investors neville · pulling d Canterbury (Naval Ravikant) says, these startups average valuations has recently from earlier this year of 600-$8 million-$5 million dropped to 300. AngelList is to help start-up companies looking for "angel" or "seed" investment web site.
He says, start-up enterprise financing market "there is no doubt that increasingly reduced". Although AngelList received every day 50 to 100 home start-up enterprise application, but only 1-2 home can get financing. He estimates that: "the company's survival rate is falling". This trend is only just beginning, so far the main influence in the initial phase of start-up companies, capital surplus in most areas of the market still exist.
This fund insecurity seems to repeat the 1990 s happened, when Internet bubble just start to appear, but many small start-up companies suddenly find it hard to raise money. Now begin to show a fundamental not harmonious: although many new network company is established in recent years, but not enough wind this maintain all the company's investment management for a long time.
From 2009 to the first half of this year, get wind of the investment and financing the consumer Internet start-up companies have 826 home, close to 1998-2000 network bubble get wind of the investment QiYeShu gold 2 times. These figures do not include angel investors, so the network company of investment real number is likely to be much higher. At the same time, the wind is cast fund itself the amount of financing-decided to put into new ecological system to the amount of money-has dropped dramatically.
On January 1, 2009 to the end of last month, the United States wind cast the company raised $39.2 billion, more than 1998 on January 1, to December 21, 2000, the $162.5 billion cut by 76%. On Monday, the national venture capital association, the third quarter the wind of the gold, and raise investment has already dropped to the lowest level in eight years.