The current climate for fundraising and exits can only be described as great. Slack, the latest $1B unicorn just raised $ 120M in funding at a $1.12B valuation. Pretty crazy for a company with annualized revenue of $12M! And corporate buyers continue to have a strong appetite for acquisitions. Yahoo! on the strength of Alibaba’s IPO has approx ~ $10B in cash and will likely to accelerate it’s pace of acquisitions. All good, right?
Thing is, capital markets go in cycles. Bull markets (when times are good) typically last 4.75 years. We are well into year 6 on this one. If you check out the NASDAQ composite index (which is heavily tech-weighted) over the past 5 years, it’s pretty much up and to the right. Read More