Comments on: With Exits Barred, VCs Keep Investments Flat

By: VC Funding Continues Nosedive: May Hit Bottom and Start Digging

VC Funding Continues Nosedive: May Hit Bottom and Start Digging — Sat, 18 Apr 2009 04:01:30 +0000

[...] continue to fund their older portfolio companies while they wait for an exit. That’s been a theme for a while in the venture world, which leaves a lot of VC portfolios in a type of limbo, where they [...]

By: VC Investment Drops in Q3, But the Real Trouble Is Still to Come - GigaOM

VC Investment Drops in Q3, But the Real Trouble Is Still to Come - GigaOM — Sat, 18 Oct 2008 04:01:47 +0000

[...] haven’t helped the exit market, but there are more systemic problems as well. I’ve been pointing this out for a while, and the VC firms participating on the conference call were finally willing to admit this was a [...]

By: VCs Have Their Heads in the Clouds - GigaOM

VCs Have Their Heads in the Clouds - GigaOM — Fri, 25 Jul 2008 17:43:45 +0000

[...] on top of the cloud have raked in more than $70 million. That’s nothing compared to the $14.9 billion that VCs invested during the same six-month period overall, but interest is picking [...]

By: Don’t Let the Numbers Fool You at Startup Houston

Don’t Let the Numbers Fool You at Startup Houston — Tue, 22 Jul 2008 03:49:41 +0000

[...] points that came out of a recent report from the National Venture Capital Association (NVCA). It is no secret that the IPO market has all but dried up and strategic sales will also be under pressure with [...]

By: Stacey Higginbotham

Stacey Higginbotham — Mon, 21 Jul 2008 12:47:58 +0000

Ryan, VCs after the dot-com crash allocated more money for follow-on funding, so a slow exit environment isn’t as big a crisis today as it was then. Seed rounds take very little capital in their earliest efforts–maybe $500,000–but they do take a lot of time. So a GP needs to ask whether he or she has the time to take on another portfolio company, even if they do have the cash to offer.

By: steveballmer

steveballmer — Sat, 19 Jul 2008 20:02:44 +0000

They are all waiting to see what happens with MS and Yahoo!

By: Ryan

Ryan — Sat, 19 Jul 2008 18:06:03 +0000

My understanding is that VC’s are dumping more cash into their existing portfolio companies because the exit opportunities are limited right now. These companies are consuming the available VC funds, which restricts funding opportunities for emerging start ups.

By: melvin manchau

melvin manchau — Sat, 19 Jul 2008 15:58:31 +0000

Perhaps this crisis is an opportunity in disguise.
Perhaps VCs should rethink their whole approach of the business and the environment by avoiding the The Seven Deadly Sins

While we certainly made more than seven mistakes during the nearly four-year life of Monitor110, I think these top the list.

1. The lack of a single, “the buck stops here” leader until too late in the game
2. No separation between the technology organization and the product organization
3. Too much PR, too early
4. Too much money
5. Not close enough to the customer
6. Slow to adapt to market reality
7. Disagreement on strategy both within the Company and with the Board
As seen here : http://www.informationarbitrage.com/2008/07/monitor110-a-po.html?cid=122921406
and perhaps the whole industry should start thinking out of the box like they used to do.
Read my post on this crisis here : http://leetchee.blogspot.com/

By: VC Slump - It’s Real « Furrier.org - Business & Technology Blog

VC Slump - It’s Real « Furrier.org - Business & Technology Blog — Sat, 19 Jul 2008 15:49:16 +0000

[...] Slump – It’s Real July 19, 2008 Posted by John Furrier in Technology. trackback Gigaom has a story with numbers that VC investments are flat. It’s true the VCs are in a slump. I wrote on July 1 [...]

By: Hector

Hector — Sat, 19 Jul 2008 04:07:55 +0000

Good post. VC’s should be investing hand over fist into seed stage companies.