The increased funding available in private markets for startups from venture capital, hedge funds, mutual funds and banks in 2014

04/13/2014

Fidelity, T. Rowe Price mutual funds and banks such as JP Morgan, hedge funds Tiger Capital Management, join the venture capital funds with increased funding for startups. Dilution is not considered a problem as the increased valuation lets these private investors markup the value of the stock on their books. Time for startups remaining private has gone up to 10 years as startups delay IPO's at times when the market is cooling as in April 2014. Startups such as Quorora with products still not out are collecting additional funds to buy time for development. Analysts fear this aspect of being flush with funding reduces discipline, as with Fab which had to retrench after overambitious plans. In most cases providers of funds are chasing aggressive returns with fewer alternatives, similar to the way the Greek bond offering for 3 billion euros was oversubscribed to about 20 billion euros in April 2014.

Grouped Articles

Rich Start-Ups Go Back for Another Helping

New York Times 04/13/2014

David Gelles, David, Gelles, Michael J. De La Merced, Michael, J., De, La, Merced

Maybe There Isn’t a Bubble, but There’s Plenty of Risk

Wall Street Journal 12/30/2014

Christopher Mims, Christopher, Mims

How Wall Street Middlemen Help Silicon Valley Employees Cash In Early

Wall Street Journal 03/28/2015

Susan Pulliam And Telis Demos, Susan, Pulliam, And, Telis, Demos

Dizzying Ride May Be Ending for Tech Start-Ups

New York Times 11/10/2015

Michael J. De La Merced, Michael, J., De, La, Merced, Katie Benner, Katie, Benner

Funds Flow to Venture Firms

Wall Street Journal 03/30/2016

Rolfe Winkler, Rolfe, Winkler

Lackluster IPO Market Flashes Warning

Wall Street Journal 04/01/2016

Corrie Driebusch, Corrie, Driebusch, Maureen Farrell, Maureen, Farrell