It wasn’t long ago that a new generation of digital entrepreneurs were dismissing the idea that what happened in the general economy would affect a newly revitalized Silicon Valley. As the New York Times reports, however, it is:
- Slowing job growth
- Fewer exits (both IPOs and M&A; IPOs now at same level as nadir of dotcom bust)
- Clampdown on expenses
- Collapsing margins (thanks to falling dollar raising cost of overseas developers)
- IPOs getting pulled, most deals that did get out now trading below IPO price
What will happen next? Far fewer private deals will get funded, and valuations will drop.
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