Ouriel from TechCrunch is moderating a panel with venture capitalists (Union Square Ventures, Softech, Wellington partners and Martin Varsavsky from FON).
It is a great time to keep investing, says a first panelist.
Another VC says that VCs didn't fear for their own life in 2001/2. Easier to get capital funds. Today, firms are very afraid not to get enough return on their investment. They are more careful and minimize their risk in their portfolio.
You cannot deny a storm is coming up. And VCs need to be prepared with the reality of the market and are cautious with revenue coming from start up they invested in.
VCs come at a later stage in a start up after angel money. VCs can really make new ventures more succeful and Martin is asking (or begging) VCs to keep investing an supporting brillant ideas.
Is not easy to have a constructive relationship between VCs and Entrepreneurs. VCs need to allow Entrepreneurs to make some mistakes and learn from them. But the role of the VCs is to also guide start ups and warn them of serious threats or issues.
Good VCs help Entrepreneurs being better in what they do.
When VCs say "no" to invest in a venture, they should explain why. Ouriel is asking if VCs are going to say "NO" next year more often. The ratio is 10 investments out of 1000 presentations made at a particular. Is that ratio going to change next year? Probably not. So no real reasons why start ups will find more difficult to raise money next year.
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Joyce
http://www.shunmigraine.com
Posted by: Joyce | Wednesday, December 10, 2008 at 06:16 AM