Sad Times For Startups


Today’s Wall Street Journal chronicles “the shakeout in Silicon Valley,” following a few startups (that we’d never heard of, sorry!) as they wind down their businesses or sell them at cut-rate prices.

Meanwhile, Martin Pichinson, a guy whose company gets paid to wind down startups, says business is booming: His firm is closing an average three startups per week, up from a couple a month last fall.

But the state of the startup economy might be best illustrated by two charts the Journal included in their coverage.

One shows that venture capital funding fell to $5.5 billion in Q4, down 28% from Q3 and down 30% year-over-year. The second shows the average price for each startup sold, via VentureSource: Less than $10 million in January and December, down from an average $20 million last November and an average $50 million last June.