The amount of funding going into higher-risk, early-stage startups has been notable the past year, according to The Wall Street Journal (WSJ). Investors have been looking at ways to invest in companies — even those that are so new they barely have a product yet.
For example, Blank Street, which sells coffee, has had three funding rounds in a year. It received $25 million three months ago, and it just raised another $35 million, the report stated.
The startup sector has had money coming in for the last decade, but it has usually gone to companies further developed. That is now changing as investors say they’re seeing more room for startups to grow, with convictions strengthened because of venture firms posting their best returns since the dot-com boom, according to the report. A burgeoning software sector and big profits on companies like Snowflake Inc. and DoorDash have helped.
The co-founder of Blank Street is Vinay Menda, 29, an ex-venture capitalist. He said the new world is one in which “capital is available,” the report stated. He said fundraising has become much…
