Silicon Valley Depresses Following US Economy

It was hard to expect that the IT business and the venture investment market will not react in any way to the negative signals that the US economy as a whole sends. Of course, Silicon Valley is still one of the brightest islands against a gloomy background, but here, for the first time, signs of decline are beginning to appear, writes the NY Times . This is also confirmed by the dry statistics on the number of IPOs (on the chart in red) and M&A venture transactions (in blue). The total volume of M&A transactions over the past six months has fallen four times: from $ 10.5 billion to $ 2.5 billion. Both the number and the total turnover have been broken in recent years. This has not happened since the crisis of 2001-2002 after the collapse of the dotcoms. Here are the numbers of venture capital investments over the past five years and indicators for the 1st quarter. 2008 year



. Naturally, such a poor financial situation reduces the total number of new web startups, most of which are created for the purpose of further resale.

In addition, experts talk about signs of a crisis in online advertising , more cautious investment by companies in the IT industry, a decrease in hiring new employees and increased costs for offshore programming customers because the dollar has fallen sharply. It is not surprising that the shares of IT companies also fall after all. During this year, Google shares fell 31%, Apple shares fell 21%, etc.