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Silicon Valley Feels Economic Chill

Venture capital has dried up, stocks have sagged in tech hot spot

By Jim O'Neill, Newser User

Posted Apr 9, 2008 11:51 AM CDT

(Newser) – 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... Read full story »

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Venture-Capital Investments Decline

Amount of money falls 5% vs. last year, but number of deals rises

(NEWSER) - Venture capitalists’ investments declined 5% in the first quarter to $7.1 billion, compared with $7.5 billion this time last year, suggesting entrepreneurial concerns over startups in a troubled economy, the AP reports. The change marks the first year-to-year dip since late 2005. Still, the figure was the fifth-largest for a single quarter since 2001. More»

Google Launches $100M Venture Capital Fund

Investments will be in non-Internet fields

(NEWSER) - Google will launch a venture capital fund next year with an initial capitalization of about $100 million, reports the Wall Street Journal. Unlike other corporate funds that back companies in their own industries, Google Ventures will look beyond the Internet to also invest in biotech, health care, and environmental technology. The fund managers say they are looking to “find young companies with truly awesome potential.” More»

Startups Seek Ways Around Venture Capital

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»

This Xoogler Might Be the Next Bill Gates

Former Googlers make ever-widening waves across Silicon Valley

(NEWSER) - In the past few years, Google has lost some serious firepower to the startup frontier, Luke Dittrich writes in Esquire. With self-styled Xooglers providing the brain power not only for two dozen or so startups, but for the venture-capital firms that fund them, it’s likely “the next big thing to come out of Google won't come out of Google at all.” More»

Start-Ups Hungry for Cash in IPO Drought

Private funding hunt under way in Silicon Valley

(NEWSER) - Silicon Valley IPOs are suddenly an extremely rare beast, driven nearly to extinction by the sputtering economy, the Wall Street Journal reports. The first quarter has seen just five venture-backed offerings, compared to 31 last quarter. “The economics have been destroyed for small-cap IPOs,” says the co-founder of Revolution Partners, one of a glut of new investment banks stepping in to help. More»

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Silicon Valley Feels Economic Chill

Venture capital has dried up, stocks have sagged in tech hot spot

Google • Silicon Valley • Apple • IPO • venture capital • credit crisis • economy

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More Newser Stories

Venture-Capital Investments Decline

Amount of money falls 5% vs. last year, but number of deals rises

Google Launches $100M Venture Capital Fund

Investments will be in non-Internet fields

Startups Seek Ways Around Venture Capital

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

This Xoogler Might Be the Next Bill Gates

Former Googlers make ever-widening waves across Silicon Valley

Start-Ups Hungry for Cash in IPO Drought

Private funding hunt under way in Silicon Valley

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