Venture capital in Silicon Valley is drying up as angel investors, wary of the fickle stock market and tightening credit markets, become more cautious with their cash, the New York Times reports. Their hesitance has slowed the pace of job growth and expansion at tech start-ups, and has dramatically cut the number of firms going public.
The Valley’s top companies have seen stock prices sag—Apple is down 21%, Google 31%—and that softness has translated into fewer acquisitions. Of last year’s bumper crop of initial public offerings, just a quarter are above offering price, half the usual number. The decline of the dollar also has hurt, pushing costs up 10%-20% and limiting return.