The current technology bubble peaked in 2014 and it will take a decade before another one begins.
That’s because seven concentric rings of capital have built up around startups in search of high returns from super-charged growth.
But as money-losing technology companies watch their post-IPO prices plunge, those rings are disintegrating.
So the venture firms will lose their investments — unless a big company buys up their struggling portfolio company at a discount.
On March 4, I met with the CEO of a data storage software company who told me that venture capital firms are telling their portfolio companies to get profitable fast. That means portfolio companies are going to be firing staff and finding other ways to cut costs.
If you look at the data storage industry, you can see how much the financing environment has changed recently.
In 2015, #Cisco Systems tried to acquire Nutanix for $4 billion CRN reported. ( #Nutanix supplies so-called #hyper-converged technology that combines into one appliance the functions of up to 12 devices via cheap hardware and sophisticated software).
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