November 28, 2012

Bubble? A Startup Crunch May Be Near

Adrianne Jeffries, The Verge

AP Photo

Over the weekend, widely-respected startup investor Fred Wilson posted a lengthy blog post musing over the implications of some uncomfortable data: startups in the trendy consumer internet space are having more and more trouble raising money once the first lumps of cash run out. "The wind that has been at our back for seven to eight years in consumer internet is no longer there," he wrote. Consumer internet startups include Facebook, Twitter, Groupon, and their descendants. These are the startups people tell their friends about, the hip new toys that get people excited, and the best ones — like Kickstarter or Etsy — have had profound effects on society.

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TAGGED: technology, Silicon Valley, startups


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