End of the free ride
October 20, 2011
According to Pagemill Partners, a well-known Silicon Valley venture capital (VC) firm, the number of semiconductor companies spawned with VC funding has been steadily declining for nearly a decade. In 2003, VCs gave life to 63 new chip companies. Last year the number was 13. It’s a trend that promises to reshape the semiconductor industry. (Note: the figures reflect companies formed in North America, Europe and Isreal.)
Established chip companies planning to expand via acquisitions should take notice. Fewer start-ups mean two things will likely happen
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