The start-up businesses seem to be stumbling in the Silicon Valley. Software and IT companies and solutions seem to be running out of their initial rounds of funding. The discussions at the World Economic Forum were largely centered around the near bust monetary situations of all the start-up businesses. In the unfortunate round of finances, the venture capitalists see opportunity in re-funding the companies, or even plans to buy out companies at lower prices and sell at higher rates later.
Support from Goldman Sachs
Goldman Sachs has been at the head of all tech and finance innovations in the world and at Wall Street too. The New York-based financial institution has been active in driving innovative financial solutions in order to accommodate businesses and operations for their clients. The dearth of funds in the market for start-ups is now allowing Goldman Sachs to use their expertise to raise a large amount of funds for their clients. Goldman Sachs tech business head mentioned earlier that the company would help start-ups to get additional private round funding and will not limit its clients to initial public offerings itself.
Goldman Sachs has made a name for itself in assisting the tech industry by popularly backing the financial needs of Uber, Pinterest and Dropbox. Since the growth rate of companies and the sector is very large, many people are also partially expecting many of the initially funded companies to fail. Financial analysts and market experts predict that only about 10 percent of the start-up population will survive the various rounds of business deals in the upcoming decade.
Focus at World Economic Forum
The major discussion at the World Economic Forum was centered around this phenomenon.
Start-up ventures have had great head starts with the help of many venture capitalists. However, they have been witnessing slow growth recently in light of the world economy plateauing. The profits began in a very dynamic phase allowing for large sums of profits and growth rates.
There are also various companies that are facing a drastic problem of funding as profits do not seem to be impressive enough in order to run any further business transaction. This is where companies such as Goldman Sachs and various other financial institutions aim at changing the game by catering to these exclusive company needs. Goldman Sachs also aims at funding additional tech start-ups this year. Goldman Sachs COO, Gary Cohn expects a very good and profitable year ahead for Goldman Sachs.