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Archive for the ‘Distressed IP’ Category

mk-au416_shutdo_ns_20090211185403WSJ reports: As Funding Dries Up, Fledgling Silicon Valley Firms Are Shutting Down; Fears of Chill on Innovation

“Many start-ups survived last year by slashing costs and deferring development projects. But as demand for their products continues to deteriorate and funding dries up, these young firms are now running out of lifelines. Many are calling it quits, recalling the dot-com bust earlier this decade.

Venture capitalists pulled back sharply in the fourth quarter as credit markets seized and stock markets collapsed. Venture capitalists invested $5.54 billion in U.S. start-ups in the fourth quarter, 27% less than the third quarter, according to data compiled by VentureSource.”

Another excellent take on the same theme is Stacey Higginbotham´s analysis at GigaOm:

“The crisis in the financial market is coming home to roost for startups of all kinds. Today’s Wall Street Journal has an article detailing the death or firesale of several startups in the last few weeks. It’s grim, but this is only the beginning for many venture-backed companies, as we reported back in October. Over the next few months, we’ll see continuing news of businesses giving up the ghost as their venture backers take a hard look at upcoming cash needs and decide to prune.

Venture capital is a cyclical business that follows the fate of the stock market, so it depends on where a startup is as the cycle turns from boom to bust. Unfortunately, many of these unlucky startups are getting crushed under the wheel as it rolls through the downturn. Right now is a good time to work on an idea, but a bad time to be selling things.

However, innovation won’t just stop.VCs are still making selective investments in early stage startups at newly reasonable valuations, hoping those deals are ripe by the time the economy reaches the next boom.”

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. In the past 60 months, Gerbsman Partners has been involved in maximizing value for 51 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $770 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $2.2 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington, DC, San Francisco, Europe and Israel.

For more information on Gerbsman Partners, please visit our website at www.gerbsmanpartners.com

By way of Stacey Higginbotham article at GigaOM. For the full WSJ article, please click here

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“Venture investment fell 8.5 percent during the first three months of 2008 compared to the final quarter of 2007, according to the new MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association.”

To read more on the MoneyTree report, go to VentureBeat´s excellent article here.

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bookcover.gifMarvin Davis, a member of Gerbsman Partners Board of Intellectual Capital has just released his new book; “Take No Prisoners”.

“Whether you are a manager, corporate director, executive, or business owner, this book supplies an effective no-nonsense action plan for fixing problems, strengthening weak spots, and building profitable competitive operations”.

As a seasoned turnaround expert, Marvin Davis has seen companies make the same mistakes over and over again. In TAKE NO PRISONERS, he shows companies how to achieve their full profitability potential by asking themselves some very basic questions and analyzing their operations properly, Packed with dozens of real-world examples and ready-to-use worksheets, the book shows you how to critically investigate every aspect of your operations….from marketing strategies to pricing policies, from products and services to operating costs and overhead….uncovering devastating inefficiencies as well as hidden opportunities for enhancing profitability. These often simple, proven ideas have worked for organizations small and large, both public and privately held and they can help yours too.

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Gerbsman Partners has published a new story on our website; “The Tipping Point – Its Here”. It makes for some thoughtful reading and discusses some well formulated insights and observations on the economic and political issues for maximizing enterprise value in the upcoming business crisis.

“As time passes, we have become increasingly struck by our inability to predict events on a macro scale and by the fundamental randomness of such events. We also note that most professionals whose business it is to make such predictions, such as security analysts, marketing strategy consultants, economists and mutual fund managers, have an abysmal record. It is very educational to look back five years at their predictions and compare such predictions to what actually occurred. Most of these professionals simply project forward existing trends and miss “Black Swan” events, such as the Crash of 1987, the Savings and Loan crisis, the September 11 attacks, the current Sub-Prime Mortgage, or more positively, the impact of the Internet.”

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