Here is an interesting editorial by way of The Deal and
“I like my doom and gloom as much as the next guy, but a whole year of unrelenting morbidity in the venture capital industry may be overdoing it just a wee bit. In some way, Sequoia Capital‘s famous “RIP Good Times” slide deck set the venture community off into a deep funk. How else to respond to the gravestone warnings to portfolio companies that they brace for a protracted slump, eliminate all but the most vital costs and learn to live without follow-on financings.
No less encouraging was the photo of a pig’s carcass with a butcher’s knife embedded into the animal’s fatty side.
Of course, there were many economic factors that were merely reflected in those slides. The lack of good exits (just five or six venture-backed initial public offerings for all of 2008), coupled with the steep drop in M&A activity and complete shut-down of the credit markets, significantly chilled investment activity, a frost that continues.”
To read the full article, click here.
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