The Wall Street Journal reported today that web startups are hitting a cash crunch. Based on anecdotal evidence of this “nascent” trend, the publication said that strains are starting to show for startups seeking money.
In Silicon Valley, money has been flowing like rivers into web startups. But now some investors and entrepreneurs say it is getting harder to raise money. Some entrepreneurs are turning to bridge financing or are beginning to accept lower valuations in exchange for funding.
The story ignited a debate in the Twittersphere among a number of angel investors. Some agree there has been a modest drop in valuations, but there is plenty of cash available and it isn’t clear if the small or the large deals are being affected the most.
To read the full, original article click on this link: Is the money drying up for startups, or not? (poll) | VentureBeat
Author:Dean Takahashi
