Many Boom-Time Startups Are Fizzling Out
As venture capital deals decline from their peak last year, more young companies are left without options.
While many other VCs continue to make smaller investments, big firms are driving up the average investment size in young companies.
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Declines in the venture capital market are hitting startups of all sizes, but the ones left particularly vulnerable are the thousands of young companies that raised seed funding during headier times just a year or two ago.
The seed frenzy peaked in the first quarter of 2015 when more than 1,500 startups raised their first rounds of capital, according to research firm PitchBook Data. Many of those companies are now running out of cash, and most won’t be able to get more.