Comments on: Venture Capital Down 50%. It’s Not Just the Recession, Folks.

By: Technically Philly » Report: Philly had nation’s largest increase in VC investment in Q2 | Covering the Community of People Who Use Technology in Philadelphia.

Tue, 28 Jul 2009 13:51:16 +0000

[...] was abysmal for the region and the rest of the country as VC investment slowed to a near halt. Some declared a sort of VC [...]

By: Venture Capital Dollars Stabilize in Second Quarter at Mid-1990s Levels | Tech Daily

Tue, 21 Jul 2009 04:05:21 +0000

[...] a year ago (when it was $7.2 billion in the second quarter of 2008), but is 15 percent above the low point in the first quarter of 2009 (when it was $3.5 billion). All in all, VC investments are trending at mid-1990s levels, which [...]

By: Venture Capital Dollars Stabilize in Second Quarter at Mid-1990s Levels

Venture Capital Dollars Stabilize in Second Quarter at Mid-1990s Levels — Tue, 21 Jul 2009 03:58:19 +0000

By: La financiación a start-ups cae el 47% en la primera mitad de 2009 : Wishful thinking…

Tue, 07 Jul 2009 13:55:46 +0000

[...] malos tiempos para los emprendedores. Y no sólo en España, también en Europa y EE.UU. Toca “bootstrapping” para [...]

By: Tech Investment Trends: Private Equity Bullish on Biotech, Clean Tech and Social Media | Investment

Mon, 06 Jul 2009 02:31:13 +0000

[...] Louis Gray: Venture Capital Down 50%. It’s Not Just the Recession, Folks. (via Google Reader)… (techcrunch.com) [...]

By: Boston Regains the No. 2 Venture Capital Spot Amidst the Downturn — Ben Atlas

Boston Regains the No. 2 Venture Capital Spot Amidst the Downturn — Ben Atlas — Sat, 27 Jun 2009 15:48:55 +0000

[...] post by Sarah Lacy on TechcCrunch – Venture Capital Down 50%. It’s Not Just the Recession, Folks. [...]

By: Advertising Is Not a Sustainable Business Model for the Web (unless you are a Search Engine) | Amit Klein

Sun, 31 May 2009 09:34:06 +0000

[...] and content solely based on advertising is fading. The diminishing rates of online ads, and the slowdown of venture capital and IPOs, has led to a realization that a sustainable business model for web companies must have multiple, [...]

By: homepage

homepage — Thu, 30 Apr 2009 16:21:36 +0000

CNBC was just reporting on this today.

By: thetimkid.com

thetimkid.com — Mon, 27 Apr 2009 01:10:43 +0000

Good thing we don’t need the capital. Bootstrap it if you can. Be creative in how you get things done.

By: Randy

Randy — Sat, 25 Apr 2009 03:18:23 +0000

Great article. Nice to see some of the comments too. It is not an easy thing to do raising money. I am glad we were able to raise some funds, and now we are getting close to being solvent. What a concept! LOL

Happy Business all!

By: le petit journal du web | MonBouquet | Le Blog des Fleurs

le petit journal du web | MonBouquet | Le Blog des Fleurs — Thu, 23 Apr 2009 11:29:44 +0000

[...] à moins qu’ils ne savent pas comment en gagner plus ? C’est les p’tits gars de Techcrunch qui vont être [...]

By: Technically Philly » Shop Talk: Philly’s Venture Captial market with PWC and DreamIt | Covering the Community of People Who Use Technology in Philadelphia.

Wed, 22 Apr 2009 20:51:26 +0000

[...] numbers, courtesy of a PricewaterhouseCoopers Money Tree report, had a few people mulling the end of venture capital as we know it. But Technically Philly isn’t as concerned [...]

By: Kevin

Kevin — Wed, 22 Apr 2009 19:44:44 +0000

Hi, can you provide more graphs on former administration changes when a democratic president replaced a republican during a recession and vice versa? And, throw in pending environmental legislation during the administration change and recession like acid rain (SO2) reduction legislation or ozone damaging, CFC reduction legislation. Do we have any examples of VCs investing in technologies to mitigate those environmental problems in the period immediately before legislation occurs?

I like how there are a few graphs, so that goes beyond a few other articles. And you do say, it is not just the recession, but you don’t really say what IT is.

Could it be (partially) that due to the “cause” (recession, vastly different administration with vastly different goals, important environmental matters) the “effect” will be that money will sit on the sidelines until Congress puts environmental mandates in place and until the EPA provides some more guidance on greenhouse gases? I don’t blame VCs for sitting on the sidelines until then.

By: Jeff Bussgang

Jeff Bussgang — Tue, 21 Apr 2009 22:03:45 +0000

Sarah provides an important perspective here which I basically agree with. I throw in my own two cents at http://www.seeingbothsides.com. The VC industry ultimately needs to rightsize.

By: Finance Geek » VC investment down but not out

Finance Geek » VC investment down but not out — Mon, 20 Apr 2009 14:55:02 +0000

[...] Lacy had a good post on Techcrunch on Friday: Venture Capital Down 50%. It’s Not Just the Recession, Folks. The charts below tell the [...]

By: Links for 2009-04-18 [del.icio.us] « iThinkEducation.net!

Links for 2009-04-18 [del.icio.us] « iThinkEducation.net! — Mon, 20 Apr 2009 11:21:54 +0000

[...] Venture Capital Down 50%. It’s Not Just the Recession, Folks. It fell off a cliff in 2001 and 2002 and it’s falling off a cliff now. (More on that in a second.) But there’s a difference: Funding levels, returns and the percentage of that money going to new ventures never got nearly as high as they did in the 1999-2000 years. So when we talk about steep drops, we’re talking about less of a bubble bursting and more of an industry correcting for more than a decade of scale and liquidity issues. [...]

By: Engago team

Engago team — Mon, 20 Apr 2009 09:44:09 +0000

After the recession of the early eighties the IBM PC started the recovery.

By: Engago team

Engago team — Mon, 20 Apr 2009 09:40:42 +0000

Could the origin of Silicon Valley
http://www.yout...h?v=hFSPHfZQpIQ (Steve Blank)
be the reason of the downfall of Silicon Valley?

Less government/defense investments?

By: Nick Pettit

Nick Pettit — Mon, 20 Apr 2009 08:01:38 +0000

My business partner and I both have day jobs as software engineers at another company. We use this money to fund our business. If you use your own computers, avoid renting office space, and optimize your code to scale well, you don’t need a ton of money.

By: Prokofy Neva

Prokofy Neva — Mon, 20 Apr 2009 07:36:37 +0000

Thank you.

By: Prokofy Neva

Prokofy Neva — Mon, 20 Apr 2009 07:36:07 +0000

I would tend to agree, but I do have to wonder what is paying your bills while your start-up product only pays out in love.

By: J Doe

J Doe — Mon, 20 Apr 2009 06:52:13 +0000

Social Innovation theory
================

In a multi-ethnic multi-religious society, in any large organizations, if the top 100 management positions does not reflect the composition of the multi-ethnic multi-religious society it can happen only though social fraud.

Above social fraud is done through the education system, where professors belonging to minority tribes blatantly giving higher grades to students of their own tribe. When this happens lot of stupid people (who think they are brilliant because they got good grades) will occupy key positions in Media, Banking and Business. Then innovation stops, stupid people cannot innovate, instead they start cheating to cover up high expectations of their brilliance, the downward spiral of the society happens.

This is how countries fail…..

The only way to sustain prosperity is to ensure top 100 management positions in to 10 organizations in all sectors including banking, media, education reflect the general ethnic composition of the society.

By: C

Mon, 20 Apr 2009 06:23:47 +0000

Good article. But, wanted to point out that the cleantech numbers put out by Dow Jones and PWC do not match at all with the numbers quoted by the cleantech-focused research groups – The CleanTech Group, New Energy Finance, Greentech Media, etc. They are all quoting numbers between $800M – $1B of “VC” money going into cleantech in Q1 2009.

Much of the difference is likely due to the wide range of non-traditional VC investment groups that invest in cleantech (i.e. folks like Good Energies, Quercus Trust, etc.). The cleantech-focused research outfits also tend to lump some things that others might classify as private equity. But, $150M is ridiculous – it was much more than that.

Dow Jones is notoriously bad a misclassifying cleantech deals (lighting, energy efficiency, etc.).

By: VentureLocator.com

VentureLocator.com — Sun, 19 Apr 2009 20:57:39 +0000

“we are in the 3rd inning of a dot com crash. the bubble is bursting at the seams. the next 9 months are gonna be brutal on tech.” there i said it.

CapitalDomain.com – sound investments

By: JC

JC — Sun, 19 Apr 2009 19:32:27 +0000

Totally spot on. VC are in deep doo doo. Financial engineering is not going to get them the 15%, 20% or greater IRR that is needed to raise ever bigger funds. I did some analysis on VC returns a few years ago and I was stunned by the lame returns (I was naive and right out of b-school). Lots of it was of course the fallout from the Internet bubble burst (no one was that clueless VC who did things like Pets.com, right?). Now, the next reckoning is already here. I’ve got a VC buddy, entry level guy who says all the cliche things that are listed here. Amazing! So true what the blog say. It’s almost like a script they use when things get bad. I used to aspire to get back into VC work after doing summer internship at a smaller firm. Not now! I think I’d rather work on learning how companies work. Go figure!