In the fourth quarter of 2015, investors funded fewer startups than in any quarter in four years, according to the report, and more startups are announcing significant layoffs, including Practice Fusion, which laid off 25 percent of its workforce in early February.
Here are four statistics from WSJ regarding the declining startup valuation.
1. The median valuation of U.S. startups in the fourth quarter of 2015 was $27.5 million, which is 60 percent less than the previous quarter’s median valuation.
2. Forty-eight U.S. tech companies have gone public since 2014, but currently 35 of them are trading below their initial public offering prices.
3. The number of tech IPOs backed by venture capital in 2015 is at its lowest point since 2011, at 16. In 2014, there were 30.
4. Fewer U.S. startups have reached the “unicorn” designation, which indicates a startup has reached the $1 billion valuation mark. So far in 2016, five startups have reached this designation. In the first quarter of 2015, almost 20 startups reached unicorn status.
More articles on startups:
‘Doctorpreneurs’ — the latest trend in funding for healthcare startups
Today’s EHR vendors were not built to solve medicine’s modern problems
New York Digital Health Accelerator showcases 6 startups, secures $3M in funding
