Early-stage funding for startups is drying up as the coronavirus outbreak puts investors on edge, spelling trouble for large corporations looking to snatch up innovative technology and talent. The company puts total private-market funding for startups at $67 billion in the first quarter, down from an initial forecast of $77 billion. The Palo Alto, Calif.-based company raised funding of $250 million in June, led by venture-capital firm Andreessen Horowitz. Startups that don’t lower their valuation expectations “will be at a substantial risk” of coming up short on funding, he said. “Fortune 500 companies need these new technologies more than ever,” Mr. Lehr said, citing continued corporate demand in areas such as document automation and customer management software, among others.
Source: Wall Street Journal March 25, 2020 22:41 UTC