SEED FUND­ING SLOWS IN SIL­I­CON VAL­LEY

Metro USA (New York) - - News -

4The bloom is off seed fund­ing, the busi­ness of pro­vid­ing money to brand-new start-ups, as in­vestors take a more mea­sured ap­proach to fi­nanc­ing emerg­ing U.S. tech­nol­ogy com­pa­nies. Seed-stage fi­nanc­ing has been slid­ing for the last two years, with the num­ber of trans­ac­tions down about 40 per­cent since the peak in mid-2015, data show. Dol­lar in­vest­ments in fledg­ling com­pa­nies have also de­clined, although less dra­mat­i­cally, drop­ping more than 24 per­cent over the same pe­riod. The slow­down comes de­spite an ex­plo­sion of in­ter­est by wealthy in­di­vid­u­als and for­eign in­vestors look­ing to park money in the next big thing. And it has po­ten­tially big im­pli­ca­tions for Sil­i­con Val­ley. Early-stage fund­ing is the lifeblood of a tech­nol­ogy ecosys­tem built on risk-tak­ing.

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