How crazy is the money sloshing around in start-up land right now?
It’s so crazy that more than 900 tech start-ups are each worth more than $1 billion. In 2015, 80 seemed like a lot.
It’s so crazy that hot start-ups no longer have to pitch investors for money. The investors are the ones pitching them. It’s so crazy that founders can start raising money on a Friday afternoon and have a deal closed by Sunday night. It’s so crazy that even sports metaphors fall short.
The funding frenzy follows nearly two years of a pandemic when people and businesses increasingly relied on tech, creating bottomless opportunities for start-ups to exploit. It follows breakthroughs in artificial intelligence, nuclear technology, electric vehicles, space travel and other areas that investors say are poised to change the world. And it follows nearly a decade in which tech companies have dominated the stock market.
The result is a booming ecosystem of highly valued, cash-rich start-ups in Silicon Valley and beyond that are expanding at breakneck speed and trying to unseat stalwart companies in all kinds of fields. Few in the industry see a limit to the growth.