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  • 04.08.16

VCs are abandoning startups for more mature companies

In the first quarter of this year, venture capitalists made the fewest number of investments in startups in four years, reports Bloomberg. Overall funding in startups sank 12% from the previous quarter, when funding had already begun to slow down. Over half the $17.7 billion invested in private companies in the first quarter of 2016 went to established private companies like Lyft and Snapchat, which raised $1 billion and $175 million during the quarter, respectively. The investment in more established companies reflect investor concern over the skyrocketing valuations of unproven startups.

MG