Sunday, December 21, 2008

A Wrench in Silicon Valley's Wealth Machine - BusinessWeek

See the full article for more on the VC recalc

It's no surprise that the value of tech startups is falling. With the deepening recession, even the stocks of highfliers such as Google (GOOG) and Apple (AAPL) have tumbled more than 50%. Still, this is a sharp reversal for a generation of companies that seemed poised to inherit the mantle of leadership in the tech industry. Top Web 2.0 companies such as Digg and Facebook, which built their business on persuading users to participate in their Web sites, were showered with attention and millions of dollars in investment based on the expectation they would be able to cash in by creating the next blockbusters of the Internet. Now those high hopes are coming back to earth.

A Wrench in Silicon Valley's Wealth Machine - BusinessWeek

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