Economics
Surge In Mobile Startups Valued at Over $1 Billion Signals a Bubble
- About 90 mobile startups have crossed $1 billion mark
- Overvaluations makes it harder for VCs to find an exit
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The number of mobile Internet startups with valuations crossing $1 billion has jumped by a third in just eight months and that’s spelling trouble for some venture capitalists looking to cash in on their investments.
Already, there are signs of worsening returns. The ratio of mobile Internet exits -- startups that are either sold or go public -- to investments has plunged over the past six quarters, excluding one outlier deal, according to tech adviser Digi-Capital.