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It’s hard to not get a sinking feeling in my stomach when I watch the stock market drop and hear smart people talk about a 25 percent correction.

Those of us in the startup world are all too familiar with the next few chapters of this story: First, angel investors see their net worth shrink so they start preserving capital and stop investing in risky startups. Second, limited partners in venture funds stop investing while they allocate assets to safer investment vehicles. Lastly, venture capitalists slow down and back the strongest of the last standing.

However, if you look closely, there is a new reality today. There are reasons to be cautiously optimistic.

 

To read the full, original article click on this link: Cautious optimism: Startups will come out ahead | VentureBeat

Author:Adeo Ressi