I am now, have been and will be wrong

Money's tight.

And because VC investors can see that things aren't going to get any better soon.  They're slowing down the new investments, making sure they're gonig to have enough money for the investments already made.

 

You're starting to see who the VC investor fears the most.

 

It is other VC investors.

 

Every investor is afraid of the next round of investors.  Last money speaks loudest.  Last money in, dictates terms and valuations.  In a tough market like we're expecting, there won't be many competing termsheets, few folks will have the luxury of setting up an auction/bidding war.

 

What's going to happen in tough times, is that VC investors and entrepreneurs will start seeing some down rounds.  Some of these are because the earlier round was just too high.  Others, because the company is desperate, and the choice comes down to dilution or die.

 

These are the times when portfolio CEO's might describe their VC investors as "Sharp Investment Money Managers".

 

Depending on how bad things get, you might see some bridge rounds get squeezed.

 

 

Companies should look to position themselves on the revenue side of the ledger.  Folks who can cut costs or provide savings will be interesting, but not as valuable as folks who can actively grow the top line.

 

Not sure which stage of investor is going to do the best in these times.

 

Especially with the IPO exist door closed.  Only M&A; would work.

 

But if that's continues to be case, then it's really going to be tough in the next year.