Startup Investors Grow Cautious as Tech Stocks Turn Down
Share prices for some of the biggest names fell by double-digit percentages last week: Facebook fell 17.1 percent, Netflix 27.2 percent and Twitter 39.4 percent.
“We’re obviously in the throes of what feels like a correction for the small-cap and growth-equity companies,” David Golden, managing partner at San Francisco-based Revolution Ventures, told The Wall Street Journal. Jim Breyer, a partner at venture capital firm Accel Partners, said more time in board meetings is being spent on financial strategies.
At the same time, deals are getting done. VCs poured $9.5 billion into U.S. startups during first quarter, the highest total since 2001, when the dot-com bubble burst, according to the MoneyTree report by the National Venture Capital Association and PricewaterhouseCoopers.
Software developers got the biggest share — $4 billion in total. File-sharing service Dropbox led the way with a $325 million deal. That was followed by vacation rentals site Airbnb and mobile messaging service TangoMe, which each landed $200 million.
Biotech firms – a distant second — attracted less than $1.1 billion, while media and entertainment companies attracted $743 million.
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