January 15, 2016
According to data from the National Venture Capital Association, venture capitalists invested $2.9 billion less last year ($28.2 billion) in tech start-ups when compared to 2014 numbers.These levels were last witnessed during the dot com bubble.
Investment still remains very strong, although the distribution has changed as investors are supporting less total deals, but larger amounts are being given to private tech companies. The bulk of investment funds support established firms.
With the changing investment environment, many prospective “unicorns” are reducing spending and cutting staff in order to turn a profit.