Venture capital firms lose billions in start-up winterSOURCE: news.com.au
Venture capital firms were once throwing money at start-ups, but now billions of dollars worth of value has been wiped out. Economy ASX on three-day winning streak ASX on three-day winning streak China’s major move on trade blacklist China’s major move on trade blacklist ‘Cannot be ignorant’: Warning on PNG deals ‘Cannot be ignorant’: Warning on PNG deals Venture capital (VC) is a high-risk, high-reward game. The VC firms and angel investors who picked Apple, Intel, and Amazon early have profited handsomely. However, the start-up winter is in full swing and hundreds of billions of dollars are being flushed down the toilet. Some prominent examples of equity-wiped start-ups include WeWork, Olive AI, Convoy, Hopin, Plastiq and Bird, the New York Times reports. The businesses have either gone bust — or are now comparatively almost worthless. The numbers are staggering. Altogether about $32 billion has been thrown on the cash bonfire.