By Evan Vitale
The venture crystal ball, according to the Silicon Valley Business Journal, reveals that investors are predicting fewer unicorns and tighter purse strings for the upcoming year.
TechFlash Editor Cromwell Schubarth says most of the investors he interviewed at the conclusion of 2015, says the booming trend of venture capital funding is slowing down. Perhaps, we’ve been on a good ride for such a long time, that it’s likely things are going to calm down a bit.
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Meanwhile, the Wall Street Journal says the Federal Reserve’s quarter-point rate increase will have very little immediate impact on the startup fundraising environment. However, gradual tightening is expected over the next 12 months. Will this leave companies short of startup cash before they start to see a profit?
Check out what capital investors are saying about this potential cash crunch here:
However, once you dig down far enough, you’ll always be able to find some positive news from a venture capitalist.
According to CNBC, New Enterprise Associations general manager Rick Yang says 2016 will be a big year for companies working in virtual reality, edtech and e-commerce.
VC money might be tight, he says, in the first part of 2016 as compared to 2015, but he doesn’t see early-stage companies slowing down. Facebook and Apple, he predicts will look to “acquire more startups to maintain growth and obtain new technologies,” Yang says.
“I don’t think that any of the big tech companies are scared of acquiring companies right now, they still have quite a bit of cash on the balance sheets. And as I kind of mentioned in one of the previous questions, I do think they’re looking to other services outside of their core products for growth in the next year,” he said.
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