Funding industry - Bubble - Maybe
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In a recent blog post , Paul Kedrosky wrote: [T]he super-seed crash is coming. We have silly numbers of companies being seeded — I had someone at a well-known, larger venture fund tell me yesterday in San Francisco that they were seeing dozens of Series A-seeking newly angel-funded companies a week.
Coming Seed Crash?
Angel Funding: Deals Are Up, Dollars Are Down: Tech News «
Angel investors are committing fewer dollars but spreading them out over more deals as they hunker down and look for exits, according to new analysis from the Center for Venture Research at the University of New Hampshire (PDF).
Seed-stage investment bubble?
Is there a bubble in seed stage investing? Critics point to Twitter raising $200M at a $3.7B valuation , and Facebook being valued at $35 Billion , or Groupon at $6B valuation just 6 months after raising a $135M round at a $1.35B valuation as evidence of a bubble. The Economist seems to think there is a bubble.
New data released today by the University of New Hampshire’s Center for Venture Research found that angel investors put much less money into startup deals during the first half of 2010 than they did in 2009 , a direct refutation of the widely held notion in Silicon Valley that seed valuations have been rising. Although a handful of closely watched deals have reaped major seed-round rewards — overshadowing more anemic growth elsewhere and giving rise to national news coverage of events like Angelgate – those few instances don’t tell the whole story, Jeffrey Sohl, director of the UNH Center for Venture Research at the Whittemore School of Business and Economics and an author of the report, told VentureBeat. “Valuations for seed have certainly been falling according to our data, which make sense because everyone’s net worth is dropping and the economy has certainly grabbed a lot of net worth from angels’ portfolios,” said Sohl.
Angel investors flee as seed and startup bubble begins to deflate
I thought I’d revisit my “ Boom or Bust: The Boom Case ” post from November 2010. In a nutshell, I predicted that some of the category defining internet & digital media companies (Groupon, Facebook, LinkedIn, Zynga, Twitter) would have blockbuster exits in the near future. I posited that in turn would bolster IPO and M&A opportunities for a whole range of other late stage startups.
Lee Hower - Blog - Boom or Bubble Redux
Are We In The Inflationary Part of an Internet Financing Bubble? 2011 = 1997 (?)
"I have not seen a better time to raise money for web startups since the late 90s"- Fred Wilson . "Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." Peter Lynch
Are technology startup valuations in the middle of another bubble?
Inflated Tech Valuations? Blame Uncle Sam
North Bridge Partners: If there is startup bubble, it’s rational | VentureBeat
Bubble or no bubble, the conditions brewing in Silicon Valley around hot new startups now differs greatly from the tech collapse of 1999 to 2001 because most of today’s new companies are actually making money , Paul Santinelli , partner at early-stage venture capital fund North Bridge Venture Partners , told me today. “There is a bubble mentality in venture financings , absolutely. But there are significant differences with this bubble compared to the one that existed in 1999-2001,” said Santinelli. “Today, most companies are actually generating revenue and the cost to build and scale those companies is exponentially less expensive,” he said. “So, the capital required is less, which creates an interesting dynamic of a feeding frenzy.”