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Posts Tagged ‘Venture Capital’

VC fundraising dropped 21 percent in 2008

Posted in Uncategorized, tagged , , , , , , on February 3, 2009| Leave a Comment »

Fundraising by U.S. venture capital firms declined 21.4 percent in 2008, a new report has found, driven down by a sharp decline in the fourth quarter as the global financial crisis throttled the industry that bankrolls much of Silicon Valley’s innovation.

The report, issued Monday by the National Venture Capital Association and Thomson Reuters, found that $27.9 billion was raised in 211 funds in 2008, compared with $35.5 billion in 247 funds in 2007. Fundraising in the fourth quarter totaled $3.37 billion, down more than $5 billion from the previous quarter and nearly $8.3 billion less than the amount raised in the fourth quarter of 2007.

The news was by no means unexpected. VCs and their limited partner investors — pension funds, university endowments and other large financial institutions — have all embraced a more conservative strategy in the uncertain economy. Industry analysts expect the pace of fundraising and deal-making to remain relatively slow through at least the first half of 2009.

Read the full article here

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2009 May Smile on Disruptive Startups

Posted in Uncategorized, tagged , , , , , , on January 13, 2009| Leave a Comment »

Here is an excellent read from GigaOm:

By now, most agree that this recession is likely be longer, deeper and fiercer than those in the past, rendering smaller, newer companies especially vulnerable. Such vulnerability is already playing out in the public markets: Over the past three months, the Russell 2000 has fallen much further than the Dow.

There is, however, a way for startups to not only stand out in this recession, but thrive in it: By being as disruptive as possible.

The me-too business model that fared pretty well during good times will be toxic this year. Venture-backed IPOs grew scarce last year and there will likely be few in 2009; merger activity is also expected to remain sluggish. Startups with little or no revenues or a high burn rate may not make it through December.

In an economy where risk is shunned, boldness is a risk that still offers a shot at success. It’s much easier to say this than to make it happen. But there is reason to believe that 2009 will allow original ideas, and companies behind them to come forth.

Click here to read the whole article at GigaOm

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Analysts: Clean-Tech Startups Face Hurdles in Economic Scramble

Posted in Board Of Intellectual Capital, Gerbsman Partners, Investments, tagged , , , on October 11, 2008| Leave a Comment »

For the last two years, with the economy collapsing all around it, the technology sector and Silicon Valley in particular have proven to be particularly resilient.

But that might not be the case forever. Sooner or later, as the economy contracts and everybody cuts spending, the companies that power Silicon Valley—the startups, venture capitalists, banks and big producers of technology—are bound to be affected.

“Black Sunday (a week ago) was really a watershed—we’ve crossed a Rubicon,” said Paul Saffo, a Silicon Valley forecaster. “I think it will change everybody’s attitudes about deregulation, toward the landscape of risk and toward all these new-age investments—these derivatives and hedges.

“In the short term, people will be risk-averse. In the long term, it will make people get back to the basics,” said Saffo. “We have risk that people can understand—a startup that gets risk capital. They do well if they deliver something of value to the purchaser, not because of a complex mathematical formula living inside a computer.”

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Bracing for the big one

Posted in Board Of Intellectual Capital, Gerbsman Partners, Intellectual capital, Technology, tagged , , , , , , on September 9, 2008| Leave a Comment »

The Valley’s latest extreme sport is feigning nonchalance about the economy. Living in an earthquake zone requires developing a habit of stoic flinchiness. The economy’s seismic shifts are slower, but just as unpredictable; all one can do it shrug one’s shoulders, stock the emergency kit, and keep on living. “We’re watching the economy crater all around us, but … well, we’re not really seeing any direct impact,” writes Tech Ticker anchor Sarah Lacy. “Making things more uneasy for those here in 2000: We didn’t cause this one.” Lacy’s right to reach back in history for examples, but her timing is off. This is 1998 all over again.

Read the whole article here

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The “Crisis” In Venture Capital

Posted in Gerbsman Partners, Intellectual capital, Market research, tagged , , , , , , , , , , , , on July 10, 2008| Leave a Comment »

Erick Schonfeld at Techcrunch recently posted a good article on the state of venture financing.

There were no venture-backed IPOs in the second quarter, and M&A deals are down. The last time there were no VC-backed IPOs in a quarter was in 1978. The liquidity drought for venture-backed startups is so bleak that the National Venture Capital Association is calling it a “crisis.” Last quarter there were only 5 IPOs that brought in a piddling $283 million. That compares to 43 IPOs during the first half of 2007 that brought in $6.3 billion.

Click here to read the full article on Techcrunch.

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