Bear Stearns woes represent a large crisis within the investment banking sector and that means a massive impact on large numbers of M&A deals affecting startups and large companies in Silicon Valley.
John Fisher, a Silicon Valley entrepreneur who sold his company Bharosa to Oracle last year, says the chilling effect from the fallout from the investment banking sector will severely impact many startups.
"The investment banks broker huge numbers of M&A deals. This crisis means that over the next few quarters there will be many companies caught in the middle, unable to complete M&A deals," says John Fisher.
Acquisitions take between 3 months to a year to complete. Startups caught in the middle of the investment bank crisis will be highly vulnerable because they would then need to scramble to raise capital.
