Bloomberg’s U.S. Startups Barometer for August 21, 2017 highlights an environment ripe for startups to attract venture capital (VC). The weekly index tracks the overall health of the business environment for private technology companies based in the U.S. Driven by the number of VC financing deals, the barometer set a new record high for the second consecutive week with a nearly 65 percent increase from last year’s index score.
While the barometer paints a bright future for startups, there are several other issues regarding the fundamentals of VC market that are more concerning including: a lack of early stage startup capital creating potential pipeline issues; the dearth of successful exits/IPOs by VC-backed startups; and, heavily capitalized mega funds with significant dry power.
