Well, VCs don't just stop funding stuff for no reason. I'm sure this is an effect and not the cause. I suppose, VC must be getting less returns on Seed rounds and everyone's starting to see that most of the new opportunities are gone. It's now all about established businesses that already have a user base. We've already seen this play out with the gaming bubble when it peeked in 2012.
There is also far less apetite for "tech unicorn" startups and IPOs on Wall Street now than a few years ago. The gold rush is over and now people are waking up to the fact that most of those super hyped companies will never turn into the next Facebook. The Fed having turned of the money faucet (i.e. quantitative easing) probably has something to do with that, too. Plus we have seen a sector rotation from tech to financial stocks recently.
Without a greater fool to sell the VC's stake to after a few years at most, the whole VC business case wouldn't work. That means VCs have to be far more discerning.
Not surprising when half the shit people fund was dog shit to begin with. Half of the time I read about start ups with the most trivial ideas ever and wonder how dumb and blind people are to throw millions at them
Most big internet wins started as little ideas. Its about the market and timing? More than how shiny the idea is. If there's a customer for it, then it can make money.
