a movement of startups seeking to exit by selling to shell companies known as SPACs, which are sometimes called blank-check companies.
The VC ecosystem depends on exits to achieve liquidity, and with fewer companies filing to go public or successfully seeking out acquisitions, the pool of available capital could start to dry up if the economic decline becomes extended. Venture capital firms need to demonstrate that they can provide a good rate of return for their limited partners, who are the investors in VC funds. their runway, which is how much cash a startup has in the bank to fund its operations, for up to 3 years.
If the gloomy forecast for 2020 startup exits comes true, then VCs, who have poured billions into unprofitable startups like Uber and Airbnb in their pursuit of growth, may have to switch gears and focus on profitability. And if unprofitable startups start to run out of runway and fail to raise additional funds, they might become some of the first causalities of the worst recession in the US since the 1930s Great Depression, which lasted a decade. LoadingBy clicking ‘Sign up’, you agree to receive marketing emails from Business Insider as well as other partner offers and accept our
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside the life of a pregnant mental health counselor during COVID-19 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. No one cares.
Source: BusinessInsider - 🏆 729. / 51 Read more »
The media startups investors are betting on in 2020 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
CONTEST CALENDAR: Deadlines for the best startup competitions of 2020 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Best businesses to start despite the 2020 pandemic and recession - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Indian smartphone shipments plummeted 48% YoY in Q2 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Tesla earnings Q2 preview: Analyst commentary leading up to the report - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »