Comments on: The “Least Worst,” General Catalyst’s Two-for-One Sale, Turning Your Umbrella Upside Down, and Other Gems From Xconomy’s Star-Studded Venture Panel http://www.xconomy.com/boston/2009/07/07/the-%e2%80%9cleast-worst%e2%80%9d-general-catalyst%e2%80%99s-two-for-one-sale-turning-your-umbrella-upside-down-and-other-gems-from-xconomy%e2%80%99s-star-studded-venture-panel/ Business + Technology in the Exponential Economy Sat, 11 Feb 2012 09:14:03 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: James Geshwiler http://www.xconomy.com/boston/2009/07/07/the-%e2%80%9cleast-worst%e2%80%9d-general-catalyst%e2%80%99s-two-for-one-sale-turning-your-umbrella-upside-down-and-other-gems-from-xconomy%e2%80%99s-star-studded-venture-panel/comment-page-1/#comment-69596 James Geshwiler Wed, 08 Jul 2009 19:39:58 +0000 http://www.xconomy.com/?p=32047#comment-69596 Dan: thanks for the (unprompted) reiteration of key points. We firmly believe this is a great time both to start a company and to being investing. <br><br>To the point Bob Higgins made about "the decline in angel groups, corporate venture arms, and hedge funds [and we should add certain venture funds as well]," the comings and goings of particular players in the financial markets is part of the economic cycle. It's not pleasant, but neither is it news. <br><br>The key question is the one of risk: not whether people are willing to accept it or not, but what types. The big one facing every venture investor today is exits and finding liquidity. It's particularly hard with the top end so heavily truncated even with some recent IPO activity; as NVCA has cited, there are structural problems in the market that have changed the game for big exits. <br><br>I'm quite hopeful and bullish that there is still good money in the average tech M&A zone. <br><br>The trick for entrepreneurs and investors will be to manage capital and expectations to be successful within the parameters the market provides. Dan: thanks for the (unprompted) reiteration of key points. We firmly believe this is a great time both to start a company and to being investing.

To the point Bob Higgins made about “the decline in angel groups, corporate venture arms, and hedge funds [and we should add certain venture funds as well],” the comings and goings of particular players in the financial markets is part of the economic cycle. It’s not pleasant, but neither is it news.

The key question is the one of risk: not whether people are willing to accept it or not, but what types. The big one facing every venture investor today is exits and finding liquidity. It’s particularly hard with the top end so heavily truncated even with some recent IPO activity; as NVCA has cited, there are structural problems in the market that have changed the game for big exits.

I’m quite hopeful and bullish that there is still good money in the average tech M&A zone.

The trick for entrepreneurs and investors will be to manage capital and expectations to be successful within the parameters the market provides.

]]> By: Daniel Weinreb http://www.xconomy.com/boston/2009/07/07/the-%e2%80%9cleast-worst%e2%80%9d-general-catalyst%e2%80%99s-two-for-one-sale-turning-your-umbrella-upside-down-and-other-gems-from-xconomy%e2%80%99s-star-studded-venture-panel/comment-page-1/#comment-69503 Daniel Weinreb Wed, 08 Jul 2009 12:38:42 +0000 http://www.xconomy.com/?p=32047#comment-69503 One one hand, I know of several startups that look great to me, but which have been unable to get any funding at all. Several are on the back-burner, or on a low boil (people working 10 hours a week or not taking any salary) as they keep searching for funding. On the other hand, at Common Angels, we are seeing a lot of startups that I feel are very exciting and promising. I am personally having a hard time as an investor because I wish I could invest in each one of them! It seems to be an unusually vibrant time for startups. To reiterate some points recently made by James Geshwiler (on Jun 11): - If your product is aimed at companies, and its value proposition is that it saves the company money, a recession is a much better time to sell your product than a boom time. Companies are thinking a lot about cost-cutting right now. - Sadly, many companies are having layoffs or even going out of business (e.g. Sicortex). But the silver lining is that there is an amazing wealth of top-notch engineers and managers out there, just waiting to join your startup! - There will probably be fewer copycat entries to your space, since there is not a flood of VC money available. So, now's your chance to do that startup you've been thinking about for so long! But first secure funding or find other creative ways to finance what you need to do. One one hand, I know of several startups that look great to me, but which have been unable to get any funding at all. Several are on the back-burner, or on a low boil (people working 10 hours a week or not taking any salary) as they keep searching for funding.

On the other hand, at Common Angels, we are seeing a lot of startups that I feel are very exciting and promising. I am personally having a hard time as an investor because I wish I could invest in each one of them!

It seems to be an unusually vibrant time for startups. To reiterate some points recently made by James Geshwiler (on Jun 11):

- If your product is aimed at companies, and its value proposition is that it saves the company money, a recession is a much better time to sell your product than a boom time. Companies are thinking a lot about cost-cutting right now.

- Sadly, many companies are having layoffs or even going out of business (e.g. Sicortex). But the silver lining is that there is an amazing wealth of top-notch engineers and managers out there, just waiting to join your startup!

- There will probably be fewer copycat entries to your space, since there is not a flood of VC money available.

So, now’s your chance to do that startup you’ve been thinking about for so long! But first secure funding or find other creative ways to finance what you need to do.

]]>