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Message: [QUOTE="Alex Wilhelm, post: 2109"] If you bring up bad news about the [URL='https://twitter.com/alex/status/1466145468937912323']price of technology stocks on Twitter[/URL], very helpful people will send you multi-year charts that put recent declines into historical context. Yes, thank you; I was not aware you could zoom out. [HR][/HR] [B][I]The Exchange explores startups, markets and money. Read it [URL='https://techcrunch.com/subscribe/?tpcc=theexchange']every morning on TechCrunch+[/URL] or get [URL='https://techcrunch.com/newsletters']The Exchange newsletter[/URL] every Saturday.[/I][/B] [HR][/HR] The instinctual need to proclaim that selloffs of tech stocks don’t matter is either a bad-faith argument or poorly disguised fear. More on that in a moment. Regardless, the recent negative price movement of tech stocks — and software shares in particular — matters. Why? Because we are not only seeing software stocks flirt with bear-market territory in technical terms, but also a pretty notable pullback in the value of even the [I]fastest-growing[/I] technology companies. This means that public valuation multiples — key indicators for yet-private unicorns and younger startups — are shrinking. [URL='https://techcrunch.com/subscribe/?tpcc=theexchange'][IMG]https://techcrunch.com/wp-content/uploads/2021/11/exchange-banner-sq-yllw-plus.jpg?w=300[/IMG][/URL]Have valuations shifted enough to slow the current venture capital bonanza? Probably not. But we could be closer to that tipping point than you’d think. [HEADING=1]Declines[/HEADING] The [URL='https://cloudindex.bvp.com/companies']Bessemer Cloud Index[/URL] is trackable on the public markets thanks to the [URL='https://finance.yahoo.com/quote/WCLD?p=WCLD&.tsrc=fin-srch']WisdomTree Cloud Computing Fund[/URL], which is essentially a trading version of the company set. After reaching a 52-week high of $65.51 last month, the market value of the basket of software companies slipped to $53.00 as of this morning. That’s a decline of 19.1%, or 90 basis points under the 20% required for a particular asset, or asset collection, to reach technical bear-market territory. We’re close, in other words. [/QUOTE]

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