Move Over, Silicon Valley

(NEWSER) - Facebook’s recent deal to let employees sell some of their stock to private investors has sent Silicon Valley scrambling, as workers at other start-ups ask for similar deals, the Wall Street Journal reports. Start-ups rely on the promise of future stock sales to lure and retain talent, but with the market upheaval scaring most companies away from public offerings, employees are getting restless. More»

Twitter, others explore other revenue streams to avoid investors' raised demands

(NEWSER) - While Wall Street investors have taken advantage of the tanking economy to nab low-priced stocks, Silicon Valley’s venture capitalists have likewise enjoyed a buyer’s market, demanding larger ownership stakes in startup outfits in exchange for their coveted funds. Companies like Twitter—initially funded with $22 million in venture capital—are now looking for alternative revenue to avoid being devalued, Bloomberg reports. More»

Private companies hurting for cash

(NEWSER) - A freeze in the market for a type of securities known as auction-rate securities may cause big cash-flow problems for many Silicon Valley startups. A number of private companies have large chunks of cash tied up in the securities, reports the Wall Street Journal. Now, buyers have dried up and they may have to sell at a big loss, if at all. More»

Many girding themselves against possible recession

(NEWSER) - Companies in Silicon Valley are slowing spending and stockpiling funds to prepare for a possible recession, with many startups raising safety-net cash from investors. Venture capitalists, who raised more funds last year than any year since 2001, continue investing, reports the Wall Street Journal, despite a recent survey that found their confidence in the region at a four-year low. More»

Some entrepreneurs place multiple bets, launching 2 companies at once

(NEWSER) - With the cost of startups falling, more and more entrepreneurs are hedging their bets by developing two or more projects at once. Joshua Rosen, who is planning to launch two different companies at technology conference DEMO tomorrow, lets MarketWatch take a look. “We see a lot of serial entrepreneurs,” said a DEMO exec, but Rosen “is the first simultaneous entrepreneur." More»