Job growth has slowed, start-up companies are hiring and spending more cautiously, and early-stage investors who nurture the start-ups with money and expertise are growing more frugal.

Most of the investors, entrepreneurs and innovators who build companies in the Valley do so with the hope of taking them public or selling them — the rainmaking opportunities that people here call exits. But with gloom pervading the financial markets and the business climate, the exits are hard to find.

Source : NYT

Recessions like periods bringing down silicon valley? Now this is scary. Effects shows that number of startup are reducing and investors are not willing to do any sort of risk test at this period of time. Investors startups are trying to exist by either going public or thinking of a resale.

Thought many sources say that this gloomy era is not to last long. I personally feel, something is going down or if it did not, there would be long effects relating to technology innovation. TechCruch reports in depth stats of a gloomy silicon valley period.

Diving a little deeper, Internet deals still dominated the first quarter of 2008, with 12 deals valued at $1.7 billion. But the number of deals where investors are taking a loss is going up, and the number of deals with outsized returns of 4 times or more of the amount of venture capital invested is going down. 

- Erick Schonfeld, TechCrunch

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