How’s Venture Capital Doing?

Screen Shot 2016-04-15 at 7.16.49 PM

One chart, two different interpretations.

Apart from last year, National Venture Capital Association data shows that the $12.1 billion invested at the beginning of 2016 was the best start to a year since the dot-com boom in 2001.

Wall Street Journal:
Funding for U.S. startups fell 25% from the fourth quarter to $13.9 billion, the largest quarterly decline on record since the dot-com bust.

Both statements are technically correct, but imply opposite things. The story depends on what the readership wants to hear.

TechCrunch is a publication for tech workers in startup hubs. Keep things positive, the industry depends on a healthy supply of optimistic app developers. WSJ caters to rich people with self-managed investment portfolios. Play on their fears of impending market doom, scare tactics always get clicks.

It’s easy to be a journalist! Pick two data points, create a storyline, pad it with noncommittal quotes from vaguely credible sources, and wait for the Pulitzers to roll in.

Leave a Reply