Top Venture Capitalists are abandoning the US tech ship
Venture Capital (VC) funds around the world have also been adding to the startups' woes.
The startup sector, after seeing quite a boom in 2014 and 2015, seems to be in the consolidation mode in 2016. Which several companies have shut shop around the world, failing to keep up with operational demands, there are several others have have acquired smaller players or shut down an arm or two, to consolidate their operations.
Venture Capital (VC) funds around the world have also been adding to the startups' woes. Several major VC funds have abandoned ship and have exited from the companies they once vehemently backed.
VC firms such as Sequoia, New Enterprise Associate (NEA), and Accel Partners, who have all invested in startup ventures in India, are amongst the top three to take the exit door.
The three companies featured in the top five exits from the Q1 2009 to Q3 2012 period and also during the period of Q4 2012 to Q2 2016, according to a CB Insights report.
While Sequoia topped the charts in the 2009-2012 period by exiting 17 companies it had once backed, it fell to second place with 14 of the top exits in the later period. NEA made nine top exits in the 2009-12 period and moved to first place with 15 exits, in the second.
Accel Partners which was in second spot during the period of in the 2009-12 period, with 15 startup exits, declined to the number 4 spot with 11 exits in 2012-16.
10 VC firms who were once top investors but later walked away from at least 6 of the top 100 tech exits, include, Kleiner Perkins, Redpoint Ventures, Norwest Venture Partners, and Battery Ventures, said the report.
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