Re:Funding Conditions for Tech Startups Soar to a New Record
by btown on Friday August 11, 2017 @04:14PM
(#14993719)
Huh, you may be right. The notion that the index is ever susceptible to large one-off deals, though, still makes it suspect as an indicator of the general health of the tech startup industry. Similar to how high customer concentration can cause the valuation of a business to be lower than an unconcentrated customer base with similar revenue.
It's not clear that's what is occurring now. I think you're confused by the outsized deals reference about last Summer - they're not saying that's what is causing the index to spike now; they're saying it's what caused the spike last Summer, such that comparing today vs a year ago should come with a flag about that data.