Tech Start-Ups Reach a New Peak of Froth

Tells amazing data story for 2021. US start-ups raised $ 330 billion, nearly double the 16 167 billion by 2020, according to Pitchbook, which tracks private financing. More tech start-ups have crossed the 1 billion valuation threshold than combined in the previous five years. According to Crunchbase, the average amount of money raised for very young start-ups has increased by 30 percent since their first big round of funding. And the value of start-up exits – sales or public offerings – has reached $ 774 billion, almost three times the previous year’s returns, according to Pitchbook.

Big-money headlines have come this year. In just a few days this month, three private start-ups hit eye-popping valuations: Miro, the digital whiteboard company, was valued at 17.75 billion; Checkout.com, a payment company valued at 40 billion; And OpenSea, a 90-person start-up that allows people to buy and sell nonfungible tokens called NFTs, was valued at 13.3 billion.

Investors also announced a large hall. Venture capital firm Andreessen Horowitz said it has raised $ 9 billion in new funding. Khosla Ventures and Kleiner Perkins, two other venture companies, each raised about $ 2 billion.

Good times have been so good that pullback warnings inevitably bubble up. The expected rise in interest rates later this year and uncertainty over the omicon variant of the coronavirus has pushed down tech stock prices. Shares of start-ups made public by the Special Purpose Acquisition Vehicle fell last year. One of the first start-ups expected this year was put on hold by Justworks, a provider of human resource software that cited market conditions. The price of Bitcoin dropped nearly 40 percent from its peak in November.

But start-up investors said funding for private companies has not yet been affected. “I don’t know if I’ve ever seen a more competitive market,” said Amber Bhattacharya, an investor at Maverick Ventures.

Even if things slow down momentarily, the big picture looks the same, investors said. From the acquisitions of Facebook’s Instagram and WhatsApp to the increasing private market valuation of start-ups like Uber and WeWork, the past moments of the abusive deal have sparked heated discussions about the tech bubble over the past decade. Each time, Mr. With that said, he thought rage would eventually return to normal.

Instead, he said, “every time it becomes a new normal.”

Investors and founders have adopted a seizure-day mentality, believing that epidemics have created a once-in-a-lifetime opportunity to shake things up. Phil Libin, an entrepreneur and investor, said the epidemic has changed every aspect of society so much that start-ups are making five years of progress a year.

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