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Is Startups Burning Too Much Cash

The growth in Technology funding continues to impress. The sector grew at 22 percent in 2013 compared to VC investing as a whole at 7 percent,” Wallace said. “As capital continues in technology related investments, subsectors like Internet and Software will continue to see high funding levels. The great performance and impressive returns in the sector for 2013 will continue to drive funding dollars to the sector. — Danny Wallace, Partner at PWC
According to Business Insider‘s recent post, “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.” And from the PWC’s Internet Rising report for Q3 2013, we could learn they put stress on investment in technology and internet as well.
Although there is still quite some distance in the chart until it hits the internet bubble record, these numbers should be taken into VCs’ account in order to prevent the burst.
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