Here's The Chart That Has VCs Ringing Alarm Bells About Startups Burning Too Much Cash

Your Message Subject or Title

MANAGE SUBSCRIPTIONS

UNSUBSCRIBE

VIEW ONLINE

Chart of the Day

Here's The Chart That Has VCs Ringing Alarm Bells About Startups Burning Too Much Cash

Over the last few days, two prominent venture capitalists have stepped forward to express their concerns about startups burning through so much cash, as they did back in 1999, which was right before the famous "dot-com bubble" burst.

Based on data from PricewaterhouseCoopers charted for us by Business Insider Intelligence, VC investments in seed stage, early stage, and expansion stage companies rose about 55% quarter-over-quarter in this year's second quarter, which is the biggest quarter-over-quarter growth since the fourth quarter of 1999, when investments grew 66% over the prior quarter (and 298% over the same period the year prior). VC funding in the second quarter was also a 124% jump from the same period a year ago.

Numbers like these are likely creeping into VCs minds who are worried about startups burning too much money.

Read »

	Also On Tech Today:
	Apple May Have Hired Jony Ive's Friend To Keep Him At The Company Forget The Hyperloop, Larry Page Wants Google To Build A Super-Efficient Airport The Rest Of The World Can Copy