ust as the public market slide for tech stocks triggered a tightening in the funding environment for existing startups and helped subject some high-flying companies to markdown valuations – CloudFlare, Taboola and Twilio, for starters, there’s also been a negative trickle-down effect on the youngest of companies. The torrent of venture money seemingly available to nascent, early stage companies may be slowing to, well, a trickle.
Despite the obvious pain for the affected companies, this resetting of the VC-entrepreneur ecosystem could be a good thing. Over the past couple months, several venture investors with whom I spoke saw evidence of a silver lining.
“Some of the best companies get started during difficult years in our economy,” said Aileen Lee, founder and partner at Cowboy Ventures. “Later this year, or in 2017, will be a really good time to start a company.”
CT for details. It’s about the blocking and tackling…always.