Re:Startups Once Showered with Cash Now Have to Work for It
by blazespin on Saturday May 21, 2016 @05:38PM
(#11746298)
tldr, The fed raised the funds rate.
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Re:Startups Once Showered with Cash Now Have to Work for It
by Ankaios on Saturday May 21, 2016 @06:48PM
(#11746548)
That, plus it seems like in the last couple of years many people got more careful about estimating the values of privately-held companies. A $100 million investment for 10% of a company in its latest round doesn't indicate that it's worth $1 billion if there are liquidation preferences or other similar favorable terms.
I might be misreading things, but I think that has made people more conservative about what scales of exits are eventually attainable.