and a prominent venture capitalist warned that the current silicon valley technology companies to burn money too fast.
New York wide famous venture capitalists and venture (Union Square Ventures) founder Fred Wilson (Fred Wilson), points out that today is not just a technology company, the current U.S. almost all start-ups burn speed too fast.
before Wilson, another: “the silicon valley, and the whole vc community or business community, their current on the risk is too big.”
gayle believes that the current silicon valley startups burn rate reached the highest since 1999, far too many companies lost a lot of money every day.
at present, does not seem to have encountered trouble in financing a startup. They dare to continue to burn, because they know that the next round of financing will have more capital inflows. But, after reached a certain stage, when a cash crunch, they will go to the wall. At this time, these companies will have to reduce the burn rate, otherwise will be eliminated.
gayle and Wilson is the most sensible, the most successful technology markets, two of the most active investors, investment Wilson technology companies including Twitter, company and bursts, and gayle investment in science and technology company with OpenTable, median and Uber, etc.
Wilson said today: “our portfolio companies burn millions of dollars each month, well this is not all of our investment. But this is not my favorite, I personally don’t like.”
Wilson said: “in fact, I have been angry for a few months, or even longer. These startups, for their part, must want to establish a real business, bring substantial profits, not investors’ money also can continue to live. In our investment in startups, and many can achieve it. I appreciate the company, also hope that more companies can do it.” (tan burn)