Silicon Valley’s Unbridled Optimism Gets Fresh Reality Check – WSJ

Yet a worrying sign is the shrinking of so-called seed deals, essentially the earliest investments in startups. The number of these deals has fallen steadily, dropping to 882 in the fourth quarter from more than 1,500 three years earlier, PitchBook says.

Venture capitalists typically follow the trajectory of tech stocks, as they did in early 2016 when they abruptly pulled back investments—only to return when the market roared back. The Nasdaq , a bellwether index of publicly traded technology giants such as Apple Inc., is down 12% from its high set in August. That means even the best-funded startups are feeling some pressure.

via Silicon Valley’s Unbridled Optimism Gets Fresh Reality Check – WSJ.