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Venture Capital

Valley VCs Sit on Cash, Forcing Startups to Dial Back Ambition

For most firms this is a pause, a reset—not a meltdown

Once driven by fear of missing out on the next Uber or Airbnb, formerly frenzied venture investors have turned circumspect, waiting to see how far the tech market will fall. Dropping valuations often kick-start a fresh round of dealmaking, but anemic initial public offerings and billion-dollar markdowns for the likes of Snapchat and Dropbox are causing venture capitalists to sit on their hands -- leaving some startups to starve.

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