The fallout from Facebook’s May IPO continued Tuesday as venture capitalist Paul Graham of Y Combinator warned Silicon Valley startups that they may be in for a stretch of hard times. In a letter, Graham states that a prominent investor he knows seems sure that the bad performance of the Facebook IPO will hurt the funding market for early-stage startups, but that no one knows yet the extent of the damage that might be caused. Later, fellow venture capitalist Fred Wilson of Union Square Ventures put a different spin on Graham’s statements.
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Facebook Fiasco a Bigger Lesson for IPOs Than Early-Stage Startups
Posted by: Richard Adhikari June 5, 2012 12:31 PMThe fallout from Facebook’s May IPO continued Tuesday as venture capitalist Paul Graham of Y Combinator warned Silicon Valley startups that they may be in for a stretch of hard times. In a letter, Graham states that a prominent investor he knows seems sure that the bad performance of the Facebook IPO will hurt the funding market for early-stage startups, but that no one knows yet the extent of the damage that might be caused. Later, fellow venture capitalist Fred Wilson of Union Square Ventures put a different spin on Graham’s statements.