SAN FRANCISCO — Is tech in for a rude awakening this year after a magic carpet ride the past few years?
The numbers, and recent actions by once high-flying start-ups, would seem to suggest so.
Consider: Mega-rounds, defined as funding of more than $100 million for venture capitalist-backed companies, are in free fall. The rate of start-ups attaining unicorn status are grinding to a crawl. Friday layoffs at tech start-ups, deemed Black Fridays, are increasing. Financial belt-tightening is the rule rather than the exception. Bellwether tech stocks such as Apple, Google, Facebook and Amazon have been taking it on the chin.
“It’s a time to recalibrate — so many companies can’t burn extraordinary amounts of money forever,” says Sunil Panel, co-founder of Sidecar, a pioneer in the crowded ride-sharing space that shuttered operations on Dec. 31.
Last year, Silicon Valley projected unbridled swagger. Today, “there is definitely an era of reckoning,” says Chris Sacca, a venture investor with stakes in Uber and Twitter. “Reality is setting in.”
A report from PricewaterhouseCoopers and National Venture Capital Association today underscores the chasm: While last year was the second-best in two decades for venture capital investments, at $58.8 billion, the fourth-quarter figures marked the smallest amount amount invested since Q3 2014 ($11.3 billion).
By Jon Swartz, USAToday, SouthFloridaReporter.com, Jan. 17, 2016
[/vc_message]Disclaimer
Artificial Intelligence Disclosure & Legal Disclaimer
AI Content Policy.
To provide our readers with timely and comprehensive coverage, South Florida Reporter uses artificial intelligence (AI) to assist in producing certain articles and visual content.
Articles: AI may be used to assist in research, structural drafting, or data analysis. All AI-assisted text is reviewed and edited by our team to ensure accuracy and adherence to our editorial standards.
Images: Any imagery generated or significantly altered by AI is clearly marked with a disclaimer or watermark to distinguish it from traditional photography or editorial illustrations.
General Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service. In no event shall South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service.
The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice. The Company does not warrant that the Service is free of viruses or other harmful components.
