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Facebook's (FB) poor IPO showing and the resulting fallout "will hurt the funding market for...

Facebook's (FB) poor IPO showing and the resulting fallout "will hurt the funding market for earlier stage startups," warns Paul Graham, co-founder of major startup incubator Y-Combinator. Graham expects many hot startups will have to accept funding rounds with lower valuations than the ones granted in prior rounds. He's far from alone in expressing such concerns.
Comments (2)
  • Wow, thats tragic. 21yr old kids will no longer get $1B valuations for building a little applets that push social-media polygons around on a smartphone. The horror!!
    5 Jun 2012, 11:15 AM Reply Like
  • Hard to understand why this will serve as an barrier for future funding. My guess is founders will still enjoy lofty valuations even if not at nosebleed levels.
    5 Jun 2012, 11:18 AM Reply Like
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