I had my next few purchases all planned out - a nice alarm clock, a new TV, and a big bookcase. Then signs of a recession began to pile on, and setting aside extra mortgage payments started to seem like the better idea. Many companies are thinking similarly.
Did you notice the flow of funds a while back? Even as unnerving economic indicators pointed in another direction, it might have been easy to interpret the money's presence as a good thing - a continuation of business as usual, or even better, an upturn. But that interpretation might have been wrong.
Eric Eldon writes, "Out of 379 IT-related funding rounds that happened in the fourth quarter of 2007, 129 were for web companies, according to Dow Jones VentureSource. From total of $3.7 billion in investments, nearly $1.1 billion went to these web companies. 'It's pretty impressive for that little [industry] segment', Dow Jones' Adam Wade tells me, noting that there have been more than 300 rounds raised already in January, a good portion of which have been web deals."
We're not necessarily screwed, though; although an hour's data is hardly indicative of a long-term trend, the Dow and Nasdaq are both up about 0.3 percent so far today.
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