One more Investor sounds the alarm

Netscape founder and Andreessen Horowitz partner Marc Andreessen has joined the chorus of people warning that startups are taking on too much risk and burning too much cash.

The so-called startup burn rate conversation was sparked by Benchmark’s Bill Gurley, who recently told The Wall Street Journal that “Silicon Valley as a whole … is taking on an excessive amount of risk right now.” He believes startups are burning a dangerous amount of cash — an amount that resembles 1999 just before the dotcom bubble burst.

Here was Andreessen’s own warning on Twitter: “When the market turns, and it will turn, we will find out who has been swimming without trunks on. Many high burn rate companies will VAPORIZE.”

Read more: http://www.businessinsider.com/marc-andreessen-on-startup-burn-rates-worry-2014-9#ixzz3EUufI0Bl

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