The first effect, by definition, would be declining valuations for public technology companies, immediately crimping M&A plans and delaying some purchases until later.
The venture capital industry in 2016 saw declining valuations, fewer venture-backed exits, and fewer unicorns, contrasted with a record year for fundraising, significant acquisitions, and new developments in emerging technologies.
It's reasonable to expect most of the metrics describing the venture capital industry to trend toward the mean: slight increases in dollars invested in venture capital, continuity for investment pace and capital deployed, steady valuations in early rounds but declining valuations in later rounds.
It's not unreasonable to expect most of the metrics describing the venture capital industry to trend toward the mean: slight increases in dollars invested in venture capital, continuity for investment pace and capital deployed, steady valuations in early rounds but declining valuations in later rounds.
Funding in early-stage startups declined, valuations fell — in some cases sharply — and the technology IPO market was weak until the very end, undermining prospects for startup exits.
We find that firms with more preoccupied independent directors have declining firm valuation and operating performance and exhibit weaker M&A profitability and accounting quality.
Declining market valuations "really remind us of the importance of fundamentals, like getting good management into place.
"This was a challenging quarter, as we saw a marked decrease in client activity and declining asset valuations," Mr. Blankfein said.
(See "Psst. Want Wachovia?") On Tuesday, it said it took the $6.1 billion of goodwill charge for items related to "declining market valuations" in its "commercial, corporate lending and investment banking subsegments".
"Despite recent price declines, valuations of [large cap, but recently public technology stocks] still look somewhat excessive by traditional metrics.
