Proof: Group-think a Dominant VC Trait

Most tech insiders know that VCs are risk-averse lemmings who chase hot new trends and when times turn bad, collectively groan: OMG! In short, they don’t quite do what they get paid to do — make money by investing in risky ideas during times of distress. Proof of this lemming-like behavior is quantified by the results of a survey conducted by the industry’s flagship organization, the National Venture Capital Association. They surveyed 400 venture capitalists to find that:

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  • 92 percent of VCs thinks investments will slow in 2009. (Translation: We are all going to be hiding under our desks.)
  • 19 percent say they are going to invest in more companies.
  • 60 percent are decreasing their seed investments. (Translation: We are not taking any significant risks)
  • Cleantech investing has the potential to be stable or even grow in 2009; Internet investing, not so much. Most are sour on Media and Chip investments as well.
  • Managers of Indian & Chinese funds will be backing off and taking it easy next year.

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(Disclosure — given my recent foray into the land of VCs, I qualify as a baby lemming!)

Photo Courtesy of Petereck via Flickr

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