Silicon Valley's reality: The party is over

Silicon Valley's reality: The party is over

JPMorgan: Internet bubble bursting Marko Kolanovic, JPMorgan, gives his perspective on the tech sector and highlights catalysts that will impact the space in the coming weeks. Investors and entrepreneurs celebrated success at the ninth annual Crunchies Awards in San Francisco. But irrational exuberance was in short supply at the end of a day, when Zenefits, nominated in the fastest rising start-up category, announced an executive reorganization. The Valley is in the midst of a correction, and that is a good thing, said insiders. It has become harder to raise money, terms like "cash-flow positive" and "sustainable growth" are coming into fashion, and venture capitalists are doing something they haven't done in years — they're saying "no." "The party is over and we all have hangovers," said Menlo Ventures partner Venky Ganesan, incoming chairman of the National Venture Capital Association. "We have to take a couple of aspirin and ride through the pain.

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