Download Applico’s State of the Market & Notable Deals Report here: hacks.applicoinc.com/post/129
Venture capital funding has declined in 2020 by almost 50% fewer deals closing year-to-date compared to last. Reports from VC’s that LP’s are second guessing new capital commitments are leading VC’s to retrench and reassess strategy.
The drop off in funding has left many startups with no choice but to scale back operations. Smaller tech startups are closing their doors. While mid-large tech startups are laying off as much as 80% of their staff.
Rapid sales declines and lack of VC support have led to unforeseeable cash crunches. Many tech companies, large and small, need cash fast and are willing to provide material discounts.
Debt is proving to be the fastest vehicle to get cash into startups’ hands.
This report will shed light on recent deal’s valuations, number of deals closed by region, average layoff percentage for main tech startups and recent notable deals closed.
Originally Aired: 05/14/20
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Platform Innovation