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Tech startups in US have hopes of a brighter 2017

Tech startups in US have hopes of a brighter 2017

Posted by PanamericanWorld on January 10, 2017

Investors who once poured money into the nation's start-ups with abandon began to tighten their belts this year. The amount of money that flowed into start-ups in the United States fell in 2016 for the first time in four years as the number of deals struck tumbled to their lowest levels since 2011. But the technology world has high hopes that 2017 will prove to be brighter, as the parent company of Snapchat and other highfliers prepare to go public and venture capitalists amass huge new war chests. About $67.8 billion was invested in start-ups in 2016, according to data from PitchBook, down 15 percent from last year. And, just 7,841 deals were struck, down 25% from the period a year ago.  

Much of 2016 proved to be a less ebullient time for the once red-hot start-up market. In years past, investors and the industry press alike delighted in anointing new "unicorns," the once-ballyhooed term for a start-up valued at more than $1 billion.  

This year instead brought a healthy skepticism -while the apocalypse hasn't arrived, leaner times are ahead. Startups have tightened their belts, laying off staff and focusing more on reaching profitability rather than skyrocketing user growth. Just 12 companies joined the unicorn club, according to the data provider CB Insights, a 70% drop from 2015.  
 
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