VC slowing down
Mon, 10/27/2008 - 18:14 — jpark (not verified)
From the Wall St. journal a slowing VC world
Everyone is saying the same thing.
VC is slowing down. hunker down, wait for spring, get cashflow neutral now.
All true.
But companies are being told to conserve cash.
from the NY Times.
But this is the opposite of the "grow big fast" mentality that has been in VC for a while. Maybe the dotcom method of "rocket fuel" is over?
If it is a retrenching of the VC business model, or a full scale evolution, then several funds and partners will get caught in the transition.
I don't know what it would change into. Maybe more along the lines of Angel investing, where the investor doesn't hand off the company to another group, but mothers the business along. If that's the case, then there will be a high premium on people who have done it before, and the business will become even more of an apprenticeship industry than before.
It would shrink the population of VCs. I don't know if that would be good or bad.
Everyone is saying the same thing.
VC is slowing down. hunker down, wait for spring, get cashflow neutral now.
All true.
But companies are being told to conserve cash.
from the NY Times.
But this is the opposite of the "grow big fast" mentality that has been in VC for a while. Maybe the dotcom method of "rocket fuel" is over?
If it is a retrenching of the VC business model, or a full scale evolution, then several funds and partners will get caught in the transition.
I don't know what it would change into. Maybe more along the lines of Angel investing, where the investor doesn't hand off the company to another group, but mothers the business along. If that's the case, then there will be a high premium on people who have done it before, and the business will become even more of an apprenticeship industry than before.
It would shrink the population of VCs. I don't know if that would be good or bad.
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Jean-Luc Park
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