Cash dries up America’s entrepreneurial boom is dissipating

entrepreneurs need funds, development of Mingmen entrepreneurial companies lies in financing, now China is showing business boom period. America’s entrepreneurial boom is fading, and the most obvious sign is that cash is drying up. Now, let’s get to know the business in the United states!


At the end of

2015, HealthSpot, a remote kiosk company, had to close down because of lack of cash. The drying up of cash is not only fatal to small businesses, but also for unicorns. Since since the last quarter of 2015 on venture investment began to significantly tighten, cannot create income projects, capital has begun to retreat even directly asked to close it.

2015 in the four quarter of the U.S. market for venture capital investment reached $17 billion 130 million, the lowest since the five quarter, but still at historic highs. In response to the sudden tightening of the market, companies have started to lay off workers, reduce the valuation of financing and debt development, but these so-called winter action simply can not solve the core problem – lack of cash.

2016 at the end of February, the famous electronic medical record company Practice  Fusion is seeking buyers market burst. This is the last year after the founder and CEO was forced out of the board of directors, layoffs 1/4 and $20 million bridge loan, the former star company broke the latest news. As the star of the market, Practice  Fusion development is fast, 2015 full year revenue grew by $47 million to $75%.

but, with all the Internet Co Practice  the development of Fusion is based on high consumption of cash, in the fourth quarter of last year before layoffs, monthly cash consumption reached more than $4 million, and the company also launched a remote interrogation such a burn this project, to further increase the capital consumption. As Silicon Valley’s most famous investment company KPCB investment company, Practice  Fusion had to make the decision to slash costs and strive to obtain external funding.

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