NY Times: Tech Startups Not Yet Submitting To Rectal Exams For Venture Funding

A little update from Silicon Valley.
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Perhaps you haven't heard from the roughly trillion trend pieces published over the past six months, but it's a lot harder for tech startups to get funding these days.

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And while it's fun to say that you better not be hoping to pull down an $8 million Series B round for your "Uber for Kale" idea, the shift in power from entrepreneurs to investors has been swift and - dare we say it - market disruptive.

So sayeth the NY Times...

Now investors have the advantage. Instead of venture capitalists begging to be allowed to invest, entrepreneurs are coming to them begging for cash. Investors are exerting their newfound power by asking more questions about a start-up’s prospects and taking more time to invest. Some are pushing for management changes or for financing terms that would help cushion any losses they might face.

Again, we've heard this all before. Is there a novel, entertaining and cogent way in which to illustrate this painfully belabored point?

The changing balance of power is evident in the numbers. Venture capitalists have put less money into start-ups in the United States in the last two quarters, according to the National Venture Capital Association; funding dropped 11 percent to $12.1 billion in the first quarter from a year earlier. With a smaller capital pie, entrepreneurs have to work harder for a piece.

No. Those are numbers...We've seen numbers.

We want something really breathtaking and numbers suck for that. Perhaps a visceral metaphor?

Venture capitalists are putting founders through everything short of a proctology exam before they invest,” said Venky Ganesan, a partner at Menlo Ventures, a Silicon Valley venture capital firm.

There it is.

Tech bros are not yet getting their colons scoped for money. The more you know.

Start-Ups Once Showered With Cash Now Have to Work for It [NYT]

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