Five Predictions in Startup Funding in 2016

The buzz in the market still revolves around startupsWith the hoopla around startups across the globe, it can be safely speculated that the new market is thriving with dramatic and fiery outcomes. However, the reality of the situation remains far from it—it demands its place in the market in a much more nuanced and poised mannerHere...
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Five Predictions in Startup Funding in 2016

The buzz in the market still revolves around startupsWith the hoopla around startups across the globe, it can be safely speculated that the new market is thriving with dramatic and fiery outcomes. However, the reality of the situation remains far from it—it demands its place in the market in a much more nuanced and poised mannerHere are top five predictions for changes that are expected to rule the 2016 Startup funding scene as indicated by experts from Forbes.1. The Seed Valuation SlumpnIn 2016, it can be expected that the post-money valuations will return to more reasonable levels, with angel deals seeing $3 MM to $8 MM valuations and seed deals seeing $5 MM to $15 MM valuations.2. The Double Digit Valuation DumpnIn 2016, thousands of the angel and seed-stage companies that raised money with valuations in the double digit millions will be left without any future ability to raise capital.3. The “Demo Day” DoldrumsnEveryone from small banks to large government agencies are running for seed accelerators for today. As a result, 2016 will see hundreds of seed-accelerators being forced to vertically integrate, consolidate, or quietly stop accepting new cohorts.4. The Rise of Common StocknMost great companies have both great founders and investors behind them. 2016 will start to focus more on the alignment of vision and incentives as a competitive advantage, and this will lead to the rise of investing in common stocks.5. The Global Billion BoomnOver the next 12 months, there will be more opportunities for global investors to capitalise on the private equity boom and an even larger influx of investors looking outside of the U.S. 2016 will see major value creation for start-ups in China, India, Indonesia, Canada, Mexico and select European countriesnCredits: Forbes Magazine

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