The fatal flaws in this article are many (including those highlighted by others):
- The idea that one metric can predict a correction
- On top of that, the metric of funding/day is simplistic and utterly useless. A couple of mega green tech, life science or semiconductor fundings (or absence of) will skew this metric in a totally different direction. We track this stuff and 2012 hasn't been a great year for those areas of VC which often see big rounds
- Deal activity (the # of financings) in a period has to be considered in any discussion of a correction
- SF as the single market used is problematic. Is it representative of VC? The Valley or stats for the valley, Massachusetts and NY would be better to use
Shameless plug - Check out CB Insights (www.cbinsights.com). Our trends tab has some free cuts of the financing and M&A markets which may be interesting.
The fatal flaws in this article are many (including those highlighted by others):
- The idea that one metric can predict a correction
- On top of that, the metric of funding/day is simplistic and utterly useless. A couple of mega green tech, life science or semiconductor fundings (or absence of) will skew this metric in a totally different direction. We track this stuff and 2012 hasn't been a great year for those areas of VC which often see big rounds
- Deal activity (the # of financings) in a period has to be considered in any discussion of a correction
- SF as the single market used is problematic. Is it representative of VC? The Valley or stats for the valley, Massachusetts and NY would be better to use
Shameless plug - Check out CB Insights (www.cbinsights.com). Our trends tab has some free cuts of the financing and M&A markets which may be interesting.