Even as the debate continues about whether Silicon Valley is in a bubble, there is evidence that the region may be losing steam.
It's a paradox, perhaps. But, that's life in Silicon Valley for you.
The latest sign for the losing-steam argument is word that high-flying startup Box Inc. may be delaying its hotly anticipated initial public offering. The development was reported by the Wall Street Journal.
The news come as the tech-heavy
The gyrations have come in the wake of a bullish run since last summer that had some folks wondering whether the index was going to reach its dot-com bubble high. Instead, in recent weeks, several tech companies delayed IPOs or were forced to price their offerings at the lower end of the expected range.
Box, however, also faces some issues specific to its own business.
The cloud file-storage service that Box offers is in a highly competitive area, with other start-ups such as Dropbox racing against big names such as
Also, Box's financials, disclosed last month when it made its IPO filing public, did not exactly set the world on fire.
In the filing, Box reported revenue of $124.2 million for the year that ended Jan. 31. That was up from $58.8 million the previous year. The bad news, though, was that its loss widened to $168.9 million from $112.8 million.
Box had $109 million in cash on hand after burning through $92 million in cash over the previous year. That means it has some breathing room to delay its IPO, but it can't wait forever before raising more money.