It was just a matter of time. Silicon Valley, which has remained largely impervious to the increasingly global economic downturn, is starting to feel the strain, according to The New York Times. It’s not that housing prices are in freefall (they’re not) or that people are being laid off en masse (they’re not), but rather that the exit opportunities have largely dried up. According to the Times:
During the first three months of the year, only five companies backed by venture capital investors went public on Wall Street…That is down from 31 in the fourth quarter of last year, and is roughly the same level as at the nadir of the dot-com bust.
There was also a sharp falloff in the acquisition of start-up companies by larger corporations…There were only 56 acquisitions in the first three months of the year, down from 83 in the fourth quarter.
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