3
US VC Deal Spending Falls by Half in Second Quarter, Report Says - Slashdot
source link: https://news.slashdot.org/story/23/07/06/1031237/us-vc-deal-spending-falls-by-half-in-second-quarter-report-says
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
US VC Deal Spending Falls by Half in Second Quarter, Report Says binspamdupenotthebestofftopicslownewsdaystalestupid freshfunnyinsightfulinterestingmaybe offtopicflamebaittrollredundantoverrated insightfulinterestinginformativefunnyunderrated
Do you develop on GitHub? You can keep using GitHub but automatically sync your GitHub releases to SourceForge quickly and easily with this tool so your projects have a backup location, and get your project in front of SourceForge's nearly 30 million monthly users. It takes less than a minute. Get new users downloading your project releases today!Sign up for the Slashdot newsletter! or check out the new Slashdot job board to browse remote jobs or jobs in your area
×
Venture capitalists are funding fewer startups, especially at the earliest stages of a company's life, according to new data from research firm PitchBook. From a report: In the US, investors financed 3,011 startup funding deals last quarter, about a third fewer than a year ago. And they spent a lot less cash: $39.8 billion, down by nearly half from the same period last year. Take out the more than $6.5 billion investors spent on payments company Stripe, and the total looks even worse, said PitchBook analyst Kyle Stanford.
The biggest drop came in angel or seed deals, which is financing for startups usually still at the concept stage. In that category, there were half as many funding deals as there were a year earlier. Those early funding rounds -- when young companies are either nurtured or starved -- are generally considered to be critical to the health of the venture ecosystem. But the lower deal numbers aren't all bad news, Stanford said. In the heady days of the pandemic boom, there were "probably too many" startups raising money because the public markets can only support so many public offerings, he said. "Starting these companies slower is probably healthy."
The biggest drop came in angel or seed deals, which is financing for startups usually still at the concept stage. In that category, there were half as many funding deals as there were a year earlier. Those early funding rounds -- when young companies are either nurtured or starved -- are generally considered to be critical to the health of the venture ecosystem. But the lower deal numbers aren't all bad news, Stanford said. In the heady days of the pandemic boom, there were "probably too many" startups raising money because the public markets can only support so many public offerings, he said. "Starting these companies slower is probably healthy."
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK