Landfill by Ian Foley
This new cartoon illustrates how the excess of cash is diminishing the ‘Valley of Death’ for many start-ups.
Historically, start-ups that could not get traction beyond the idea stage were stuck in a Valley of Death, where they could not get funding and quickly failed.
In today’s venture capital market, where there are over 5,000 first-time fund managers, 300,000 angel investors, and an active corporate venture market not solely focused on financial returns, start-ups are finding they can continue to get access to capital.
The consequence of this is start-ups are remaining private companies for extended periods of time, kept alive by insider venture rounds and an economy with few other places for yield.
This dynamic has also put founders in stronger positions than their investors and board members, and was arguably a contributing factor to some recent cases of alleged fraud.
#valleyofdeath, #angelfunding, #gatesofhell
You can find more of Ian’s cartoons here.