Silicon Valley's failing start-ups come mainly from social networks and video

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Sina Science and technology news Beijing time August 11 noon, Sherwood, founder of the US consultancy, which specializes in helping start-ups close companies and auction assets, Matty Pi Marty Pichinson said that the current collapse of Silicon Valley start-ups comes mainly from social networks, Video Distribution and clean energy field.

The technology market has ups and downs, but there is an immutable truth: most startups fail. This shows that no matter what the market conditions, there will be more or less a series of companies, because the inability to raise enough money or to attract enough users to return investors and collapse.

The US private Equity news website Pehub in Wednesday to interview Piqin Sen on the issue, following his main points:

-Companies that are currently shutting down are mainly from social networks, video distribution and clean energy. There are also business failures in the online retailing industry. While it is thought that the online retailing industry is simpler to operate, it is difficult to maintain the right amount of inventory. Once the method is wrong, it is easy to fail.

-B-round investment appears to be more secure. Sherwood has closed many businesses that have just completed angel investment and a round of financing. But when the enterprise entered the B-round financing, it seems to have made substantial progress, not only can be bigger, and can enter the next stage of development. But when the company launched the C-round or later financing, it is possible to encounter the scale of obstacles, it is difficult to obtain sufficient capital.

-intellectual property is the most valuable asset. A few years ago, startups could sell their servers for tens of thousands of of dollars, but now prices are much lower. However, many companies have valuable patents and technology, most of which are being bought by other small businesses competing with them. But as the patent war rages on, some big companies want to protect themselves by acquiring patents.

Although the Sherwood will be better next year, the main reason is not the current market downturn. The real reason is that most of the venture-backed firms fail, and this will provide a steady stream of revenue for the company. The company's best year was 2000, when the dotcom bubble just burst. But the second good year is 2010, which, in many people's eyes, is in a "bubble".