Only 44 Startups In Silicon Valley Got Funded Last Month
A new report shows fewer startups are raising money in the tech Mecca, and valuations are growing more slowly.
Tech investors appear to be getting less generous as the coronavirus pandemic riles markets, according to a new report chronicling the recent impact of the coronavirus on the industry. It found that valuation growth at Silicon Valley startups is slowing and investors are handing out fewer checks.
The report, released by law firm Fenwick & West LLP, indicates that venture capitalists are becoming more cautious in light of the economic downturn. On average, when Silicon Valley startups raised money this time last year, each funding round sent a company’s value up by 63%. In January of this year, before the pandemic hit, the average round saw startups’ valuations increase by 117%— more than double the prior-round valuation. But for startups in the region that raised money in March of this year, the price increase was just 46%.