If you read the Wall Street Journal, you could be forgiven for thinking that the venture-capital market is starting to crack at the seams. It's a striking premise, all right. Just one problem: it's wrong.
Earlier today, the WSJ reported that argued startups are now having more trouble raising cash than in the not-so distant past. The Journal pointed to Naval Ravikant, an entrepreneur and operator of AngelList, a site that lets nascent companies ask VCs for capital, who said that even though 50 to 100 startups are applying for funding each day, "only one to two are getting financing."
What's more, the Journal says, the trouble appears to be spreading across the entire industry, and could have a profound impact on the ability for any startup to raise the cash it needs to build its business.
Dire stuff, if true. But VCs were quick to cry foul, insisting that they're not seeing the same trouble the Journal is.
The WSJ is suggesting things are getting bad for startups. I am not sure if that is true or not, but here is a counter argument.