Connect with us

Hi, what are you looking for?

Jewish Business News

StartUps

Startup Funding Shows Signs of New Tech Bubble

bubble1

 

Over the past few days two venture capitalists in the United States have expressed their worries about the current state of the US startup community. In essence, both are saying that startups are burning through too much cash and that the overall amount of risk currently taken on in Silicon Valley is excessive. It’s not the first time people have warned about a new tech bubble, but are the concerns justified? 

A look at the data seems to suggest so: according to Thomson Reuter data published by PricewaterhouseCoopers, venture capital funding in the U.S. amounted to $12.97 billion in Q2 2014, which is by far the highest level it’s been at since Q1 2001. Compared to the second quarter of last year, VC funding jumped 81% in Q2, representing the highest year-over-year increase since Q3 2000 when VC funding reached its historical peak. Interestingly the number of VC deals hasn’t increased as much as the total amount that was invested, indicating that the average value per deal must have increased. And indeed it has: at $11.64 million the average value per deal was as high in Q2 2014 as it’s last been in Q4 2000. 

While these numbers do not necessarily mean that we’re in a new dot-com bubble, they make one thing perfectly clear: the period of prudence that followed the financial crisis of 2009 is officially over.

 

Infographic: Startup Funding Shows Signs of New Tech Bubble | Statista

You will find more statistics at Statista

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Advertisement
cialis cialis satış