Fenwick & West partner Barry Kramer was quoted in the BusinessWeek article titled "A Wrench in Silicon Valley's Wealth Machine."
The value of tech startups is falling. Even a year ago, cash was available for startups like Digg. Now their valuation is not sitting so pretty and venture capital is drying up quick. For highfliers such as Google and Apple, stocks have tumbled more than 50 percent.
The valuations of tech startups are apt to keep falling, say some investors and lawyers. Back in September, 18 percent of the financing rounds for venture-backed startups were for a lower value than the previous round, according to the Third Quarter Venture Financing survey from Fenwick & West. In the fourth quarter that figure "could easily double," said Kramer, co-author of the VC survey.