Comments on: Update: VCs Reap What They Sow

By: No IPOs, but is it all bad? « Venture Recruiter

No IPOs, but is it all bad? « Venture Recruiter — Tue, 08 Jul 2008 05:44:14 +0000

[...] Read full story [...]

By: bill gates

bill gates — Wed, 02 Jul 2008 14:29:48 +0000

“Tech” is officially dead. What killed it? Well reason suggests high energy and resource costs will continue to suck money from the consumer economy. Inane patent and intellectual property laws which only serve to reward establishment players over innovative startups.
And, lastly the secular bear market in stocks which will not end for another 20 years.
I left Microsoft because the title of “worlds richest man” will be like a bull’s eye in the eyes of the hordes of resentful poor. The future of the economy will be in local farming, mining, and perhaps passenger rail. Look up my friend James Howard Kunstler for more…

By: NinoT

NinoT — Wed, 02 Jul 2008 08:18:58 +0000

Great insight. Based on this logic - which makes complete sesne -we should see similar low numbers for the next couple of years.

However, I wonder if the numbers will tick up after that. Although VC funding has certainly increased after the 2000-2002 drought, it seems like the exit strategy for most technology firms these days is to get bought out. Rarely do you hear the “IPO” goal any more.

By: Andrew Grumet’s Weblog » Blog Archive

Andrew Grumet’s Weblog » Blog Archive — Wed, 02 Jul 2008 05:51:31 +0000

[...] Higginbotham takes a look at today’s VC exit environment. She cites an interesting fact, the median age of companies being sold is about 7 years. It’s [...]

By: Stacey Higginbotham

Stacey Higginbotham — Wed, 02 Jul 2008 02:56:51 +0000

Samir, IRRs have been recovering from the dot com crash, although like any investment, some have done better than others. You can get some IRR data from some public institutions by request or for a broad look you can visit the CalPERs page devoted to its VC returns here:
(link)

By: Samir Raiyani

Samir Raiyani — Wed, 02 Jul 2008 00:36:38 +0000

Haven’t the IRRs been negative for most VCs for a long time now? I’m mystified as to how this business still survives at all.

By: Alan Wilensky

Alan Wilensky — Wed, 02 Jul 2008 00:32:26 +0000

Well, if the VC’s are drying their powder, maybe they should invest in another round of YASN’s and Facebook applications, or maybe another video sharing, how-to, or uploading site!

How about a social network for your apartment building! Or a Socnet for elderlywith out computers. Or…….another recommendation engine. Or a mobile social network to…wait for it - help you find your friends at the bar.

Above all, do not invest in mobile data ventures where the end-users have agreed to pay 20-30 / mo. for subscription dispatch services for independent automotive services trades. No…..that would make money.

Likewise, don’t invest in technical vertical and specialty markets. They pay cash up front, and high recurring subscription fees. That would make money. Don’t invest in that, either.