It's the only question that really matters for 2016: will startups still be able to find funding?
If the last few months are any indication, the answer shouldn't be comforting for Bay Area housing bulls. Two recent data points highlight the primary headwind facing San Francisco's economy and by extension, real estate market.
January marked the first month since 2011 without a single IPO on Wall Street. And with Square's share price sinking more than 30% since it went public late last year, public markets appear to wary of tech companies with high private market valuations.
Second, private funding of startups slipped 30% in the fourth quarter compared to the previous year. Dollars raised were up in San Francisco thanks in large part to AirBnB's monster $1.6 billion raise, but deal volume is down across the board.
Caution is in the air. But as forecasts for continued growth in 2016 still litter the headlines, not everyone is battening down the hatches.
Indeed, there may even be bottom fishing at work after a bloody month in the markets. Just this morning, Twitter popped almost 10% on reports a private equity company may be considering a bid to take the embattled social media bell weather private.
With Iowa caucusing this morning, 2016 is off to an exciting start.