Cash is pouring into tech startups from every source


Cash is pouring into tech startups from every source


When it comes to raising money, right now is one of the best times in history to start a technology company. Global initial public offerings (IPOs) for tech firms are off to their hottest start since the dot-com bubble in 2000. Venture capitalists, meanwhile, have invested more than twice that amount in the sector. The crypto craze is also fanning the flames, offering a new source of highly speculative (and legally ambiguous) capital.

A mountain of cash is available for young tech companies, following years of easy money policies from the biggest central banks. Venture capital firms have invested about $67 billion globally so far this year, on pace to exceed the record high of $87 billion in 2016, according to PitchBook data. Valuations have skyrocketed for some startups, altering the mechanics of the investing process, said Michael Jackson, a partner at Mangrove Capital Partners. Some fund managers feel pressured to join in at almost any valuation, he said....

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RSK: Good news for start-ups but not so good for Landlords. They will all want short-term leases that will allow them to cut losses if they fail or give them the opportunity to expand if they take off and grow. Thinking as a Landlord we might want to put a premium on shorter-term leases.

Ken Notes: this is a bit like betting that the next batter at a ballgame will hit a home run...

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- - Volume: 6 - WEEK: 30 Date: 7/24/2018 7:01:50 AM -