Tuesday, March 25, 2014

Many startups limping along

Angus Loten, Emily Chasan, and Russ Garland, WSJ, Mar 20, 2014, says many entrepreneurs see the humongous WhatsApp sale for $19 billion and start salivating.

Yet first-round financing for startups fell last year. Seed round (right before launch) is down 30%.

More established companies did a little better in attracting money.

It's hard to value companies that are not making any money. Art, science, and a lot of supply and demand is how one guru put it.

Ironically the less it costs to get a company off the ground, the less value there is.

People who invest bet on more value down the road--but that could also be zero.

Boy that sounds great, doesn't it? Bubble, anyone?

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