One significant reason for decreased startup investment is the large tech companies acquiring startups or shutting them down. The example of Google's acquisition of Picasa,which was shut down, illustrates this point. When startups fear that they might be acquired, it can deter them from entering certain markets or innovating.
Startups also face the challenge of competing with big tech companies that can quickly copy their innovations. This can discourage startups from investing time and effort in creating new innovations