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   From: incomptent@democrats.california   
      
   On 09 Oct 2021, Tritek  posted some   
   news:sjse7p$qsd$30@news.dns-netz.com:   
      
   > Democrats caused it.   
      
   Struggling Silicon Valley startups reportedly face a potential “bloodbath”   
   this year as cash runs low and wary tech investors flee a major downturn   
   in the sector.   
      
   Conditions in the tech sector have gotten so rough that many embattled   
   startups will likely be forced to raise funds from outside investors at a   
   lower valuation – known as a “down round” – or risk running out of money   
   entirely, industry experts told Bloomberg in a dire report published   
   Monday.   
      
   “We haven’t had a compression in values like this in more than 20 years.   
   It’s an absolute bloodbath,” Cameron Lester, global co-head of technology   
   media and telecom investment banking at Jefferies, told the outlet.   
      
   Lester added that a “down round” is better than the alternative of going   
   out of business.   
      
   “What matters is you’re a survivor,” Lester added.   
      
   The share of startup fundraising deals that qualified as “down rounds” hit   
   nearly 11% in the fourth quarter of 2022, according to PitchBook data   
   cited by Bloomberg.   
      
   Preliminary data for the first three months of this year placed the share   
   of such deals at roughly 7.5%, though the number is expected to increase   
   as more deals are closed.   
      
   Startup founders are notoriously wary of “down rounds” because any   
   reduction in valuation erodes the on-paper value of their shares – as well   
   as the value of investors’ stakes. Executives fear that drops in valuation   
   will erode confidence in their brands and hurt long-term prospects.   
      
      
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)