Psssst! Is the Startup Bubble Bursting?

Hear that?

It may be the startup bubble bursting in Silicon Valley as startup funding dropped 25% in Q1 2016 from Q4 2015.

The Wall Street Journal says it’s the largest drop in investment since the dot com bust, with the number of deals hitting a 4 year low of 884. Little darlings are slashing budgets, getting rid of free massages and sitting 2 to a bean bag chair.

Seriously, median startup valuations have slid from $61.5 million (Q3 2015) to a more realistic $18.5 million, making some would-be unicorns to engage in down rounds, adding further pain to their initial investors.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, Banks, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, fraud, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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