Comments on: VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008

By: VC’s should invest now…let the American entrepreneurial spirit fly again! « Das Capital

Tue, 21 Apr 2009 01:59:35 +0000

[...] VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008 Possibly related posts: (automatically generated)Did You Know…?BET trying to find its placeNews around the HBCU loop (10/12/06) [...]

By: Tech News Geek » TechCrunch Poll: How Much Did VC Investing Drop In The First Quarter?

Fri, 17 Apr 2009 18:00:08 +0000

[...] how much money VCs put into startups during the first quarter. Mind you that VC investing for the fourth quarter of 2008 already hit a low, with the total dollar amount invested in venture financings at $5.4 billion, [...]

By: thedigitalist.net » Digital Books Are Already Here

thedigitalist.net » Digital Books Are Already Here — Thu, 05 Feb 2009 10:18:47 +0000

[...] and standards are now roughly in place. A wave of innovation has most likely come to a close as the “social media boom” hits the skids. We have been innovation addicts, slavishly jumping on each new trend, application and concept, [...]

By: Real Venture Capitalists are now attractive to invest on « EXPOSED -Today’s Technology Trends & Thought

Sat, 31 Jan 2009 00:22:31 +0000

[...] Other Related Articles: VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008 [...]

By: Investments Drop, Green Startups Flourish | KillerBlog

Investments Drop, Green Startups Flourish | KillerBlog — Mon, 26 Jan 2009 16:37:51 +0000

[...] VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008 [...]

By: ベンチャー資金、2008年Q4に33%ダウン、通年では8%ダウン

ベンチャー資金、2008年Q4に33%ダウン、通年では8%ダウン — Sun, 25 Jan 2009 20:01:22 +0000

[...] Venture Capital Investement Data 2008 – Get more Business Plans[原文へ]（翻訳：Namekawa, U） ShowListings(”arc3″); ShowListings(”arc2″); AddClipsUrl = [...]

By: user agent » Blog Archive » The Web is a tough place to do business

user agent » Blog Archive » The Web is a tough place to do business — Sun, 25 Jan 2009 19:32:06 +0000

[...] than ever to find the cash to keep going – either in the form of investment (despite the fact that VC investing is way down) or through business models that could actually sustain them. Twitter might be exploring both – [...]

By: George

George — Sun, 25 Jan 2009 18:17:50 +0000

I think/hope that good ideas will still get funded. Obviously valuation terms will be less favorable for entrepreneurs. But if you have a good idea and that you believe in and know how to monetize, keep going. That’s my motto.

By: VC Dollars Dropped 33% In The Fourth Quarter, Down 8% For All 2008 - Technology.am

Sun, 25 Jan 2009 02:45:00 +0000

[...] on TechCrunch. (No Ratings Yet) Loading [...]

By: Startup Rockstars

Startup Rockstars — Sat, 24 Jan 2009 22:34:47 +0000

In many of the charts – including in the docstoc embedded report – levels in 2008 look a lot like 2006. That’s less of a rewind than the stock market took in 2008 (when it went back to 2003).

But 2009 may unfortunately bring that difference into balance.

By: Chris Dessi

Chris Dessi — Sat, 24 Jan 2009 22:23:56 +0000

I’d love to see a follow up article. Will the quality of VC investing improve over the first two quarters in 2009? Maybe it’s time some VC’s throttle down and scrutinize their investments a bit more? Or maybe this will push funding to companies that are trying to change the world (see http://www.akoha.com) rather than the quickest flip to make FU money. I think this could be a huge change the better in our industry. I guess I’m just a “glass is half full” type of guy.

By: Bad news for startups, VC down 33% in Q4 | AlamgirDesigns

Bad news for startups, VC down 33% in Q4 | AlamgirDesigns — Sat, 24 Jan 2009 20:57:33 +0000

[...] Click here to read the full article. [...]

By: Jeremy Chone

Jeremy Chone — Sat, 24 Jan 2009 20:09:15 +0000

Agree with (1) being the most important, however, lot of startups get funded without this (still).

By: Jim

Jim — Sat, 24 Jan 2009 18:54:26 +0000

geez thats scary to see

-Jim
http://www.movi...nlineforum.com/
(just getting started so check it out)

By: Don Draper

Don Draper — Sat, 24 Jan 2009 17:40:41 +0000

VCs don’t have a big pile of money sitting around that they have to spend. They have a big pile of commitments that when they make a capital call won’t come through. So they sit on their pile of commitments because having a capital call fail is very embarrassing.

VCs are supposed to have a 5-7 year time frame? That’s funny. Their time frame is the cycle until the next round of funding so they can bring in the next set of VCs.

By: Chris

Chris — Sat, 24 Jan 2009 16:44:18 +0000

VC’s money is raised exclusively from close business partners and friends. There are no “public” or anonymous VC funds.

With that said, a VC fund can just as easily become a hedge fund.

Where they are investing for ROI, but not in startups.

By: VentureLocator.com

VentureLocator.com — Sat, 24 Jan 2009 16:10:53 +0000

does this mean there may never be another facbook? feel sorry for all the college kids with tech degrees and tech ambitions. startups will virtually be gone by 2010. startins will rule the net. users and businesses will position themselves with the established mainstream destination sites.

CapitalDomain.com – equity experts

By: fb58016492

Sat, 24 Jan 2009 15:18:25 +0000

Overall though, only a decrease of 8%, that’s not terrible considering the economy. You’d think that they would be more hesitant to invest in a climate like this. I guess they realize that this is still where the best companies are made. They also seem to be willing to give second (or third) rounds to their perceived “winners” so that they don’t go under.

twitter.com/dankalmar

By: Linkdump 31 | ettf.net

Linkdump 31 | ettf.net — Sat, 24 Jan 2009 10:32:04 +0000

[...] reports that Facebook is nearly twice the size of Myspace, VC funding dropped 33 percent in Q4 and the global interwebs population passes 1 [...]

By: fb718520763

Sat, 24 Jan 2009 09:59:26 +0000

I agree with Dror, VCs need to spend their money sometime in the future.

The deal for new businesses is clear(?) :

1. Develop a real service with a concrete revenue model.
2. If possible use your own money in the beginning – next 12-18 months.
3. Partner with a company that can help you take your “idea” to a concrete product.
4. Outsource the development & testing work to a company in India /China that can work with u (at a third of the cost) in an agile mode to build your product. Picking the right vendor is VERY important. Avoid the big players…
5. Have a clear exit strategy defined for your investors.
6. Did I mention build a real service with a concrete revenue model?

Position yourself for the time when VCs will spend.

By: Dror

Dror — Sat, 24 Jan 2009 08:49:55 +0000

The first thing that smart VCs did when things went south is to make sure that their portfolio companies could make it till things recover, 18-24 months.
But then they still need to look around for deals. They have a limited amount of time to show return on investment, and sitting on their hands is not really an option. They can wait on the side lines for 6-9 months, but then need to start investing the money that they’ve raised in their current fund.
Raising new funds though, is a differetn story.

By: itaki

itaki — Sat, 24 Jan 2009 07:11:33 +0000

no comment!

By: Chris

Chris — Sat, 24 Jan 2009 07:11:05 +0000

I dunno how many people here have dogs, but when dogs get really scared, they pee themselves.

Investors peed themselves. Eventually they realize it’s the same environment they left, and they come back slowly and gradually.

(my opinion with no warranty again)
There is no way a startup can ever beat the potential of any tech stock barring the ones below $2. Once the market is good and rebubbled, the mobile app startups(and only the mobile app startups) will start to get series A again.

By: Alex

Alex — Sat, 24 Jan 2009 06:13:22 +0000

news flash?

By: Chris

Chris — Sat, 24 Jan 2009 06:12:55 +0000

http://picasawe...738096264591826

Dude, my pie is all green, and will only get more severely greener as we go towards Q2 which is the expected recovery stage. Granted Sun will only turn in 010, but that’s ok. I’m not in a hurry.

With that said, how could piloting a startup be any better than this?

The money was not lost. It’s still there. It’s still going to go back into the market. People are animals. They get scared just like animals. Once the fear subsides the money starts flowing again. The winners are clear thinkers that don’t give into their animal instincts.

I’m still doing my startup, but the hell if I’m going to put most of my free cash there.

Nothing can beat buying up proven value at bargain basement prices.

I bet 99% of those missing VC investments are going towards hedge funds and buying up depleted stock.

Disclaimer: my opinion is solely my own and offered with no warranty what so ever.