Startups Less Viable but Winding Them Down Is a Booming Business

PUI-WING TAM and BEN WORTHEN report of in the Wall Street Journal that investors are investing less and startups are worth less as the recession hits Silicon Valley. In More Tech Start-Ups Call It Quits the authors describe a dire economic environment for entrepreneurs but also point out that firms such as Sherwood Partners, a Mountain View, Calif are profiting by "specializing in winding down start-ups...averaging three start-ups a week, up from just one or two closures a month in September", according to their managing director Martin Pichinson.

Martin Pichinson, Sherwood Partners