Monday, March 10, 2008

VC Industry Focus to Shift?

These are tough days for venture capitalists - and tech entrepreneurs. For every YouTube and Facebook, there a hundred other VC funded businesses that are just limping along. Heck, some might even be skipping along (generating revenue, perhaps even profitable) but it doesn't much matter. The is precious little 'liquidity' - the life blood of a heathy start up environment. The IPO window is almost shut for all but the most impressive companies. Wall Street wants to see revenues of somewhere in the $100 million range, and profitablity, to seriously consider a company for a pubic offering. Even then, with the dramatic downturn in tech valuations, there are few buyers for these nascent tech company shares. Certain industries, telecom, semiconductors and enterprise software are particularly difficult to attract Wall Street interest. There is a sense in these sectors that the best days are passed. While not true, Wall Street bias are hard to overcome.

Many investors - and founders - have been in their companies for 6, 7, even 8+ years. They are finding that it is not enough to build a solid revenue generating company. And those of us in the start up world know how terrifically difficult that is. No, revenues and profits are not enough. The public markets must also be in an accomodating mood. With tech valuations at signifcantly depressed levels, even the M&A market is in a slump. Acquirors like to use their generous market caps to buy smaller companies. When their market caps shrink, so does their acquisition currency - and their nerve.

So where will this take us? One effect of the long tech slump (going on 8 years) is a greater openness on the part of traditional tech VCs to consider investments in alternative industries. Clean tech is clearly one such example. But there are others. VCs are now investing in such non tech spaces as store front retail, apparel and even consumer products. Where this winds up is anyones guess. But I believe a growing percentage of venture dollars will find their way to non traditional industries. Should this trend gain traction, Silicon Valley itself may become less relevant over time. To be sure, it will likely remain the largest base of VC investment. It just won't dominate as it historically has. That is not necessarily a bad thing. Southern California entrepreneurship has a lot more to offer than just technology centric businesses.

41 comments:

HaVeegles said...

do u invest in other william quigleys
www.youtube.com/wquigley
www.quigleyart.com
www.skrapper.com

google william quigley art
or skrapper fashion

1023 said...

Never put off till tomorrow what may be done today..........................

九份 said...

good~ keep sharing with us, please....I will waiting your up date everyday!! Have a nice day........................................

any said...

喜歡看大家的文章,祝你順心~^^ ........................................

志義 said...

IT IS A VERY NICE SUGGESTION, THANK YOU LOTS! ........................................

楊偉誠 said...

hello~~........................................

陳欣幸 said...

找一個懂妳的人也期許自己做一個人懂別人的人......................................................

向霖 said...

每一粒厄運的種子,卻包孕著未來豐盛的果實..................................................

彥宏志宏 said...

我們不是因為快樂而歌唱,而是唱歌使我們快樂..................................................

韋于倫成 said...

要保持更新呦,加油!!!期待你的新文章!!!..................................................

705RupertJ_Brobst0 said...

影音視訊聊天 台灣情色論壇 go2av免費影片卡通 666vl net 0951成人頻道下載 qq美美色網 ut13077視訊聊天 台灣kiss911 18成人免費a片 男人幫 成人網站-天天看美女 日本a卡漫 聊天室ut 5278免費影片 aa 片俱樂部 失敗論壇 影音交友mmshow tw av女優影片,aa片免費看影片 卡通aa片avdvd 美女交友thcmt vsbox色美媚入口 洪爺自拍走光貼圖 一對多視訊,美女短片免費試看 0204成人 視訊交友fireup 台灣kiss情色貼圖區 彩虹AV影音視訊聊天室 性愛日記 ez sex貼片區 aaa片免費看影片 aio小魔女自拍qk 免費試看成人片 g8mm視訊網 色妹妹a漫18 禁 免費視訊聊天 173 線上 aa 片試看嘟嘟 火辣視訊情人 av080下載 aa免費看影片 網愛 正妹百人斬飯島愛 情色sex520 ss369成人色網 免費a片線上看,卡通aa片免費看 aa的滿18歲影片 視訊-愛情館 八國聯軍成人 高雄視訊sexy girl34c 成人自拍色情avdvd 線上aa片試看嘟嘟

健豪 said...

人生是故事的創造與遺忘。.........................

采瑩采瑩 said...

原來這世上能跟你共同領略一個笑話的人竟如此難得 ............................................................

hernande said...

Joy often comes after sorrow, like morning after night.............................................................

萱祥 said...

Where did you purchase this product?..................................................

洪筱婷 said...

祝大家都平平安安健健康康!

韋以 said...

Quality is better than quantity.................................................................

江婷 said...

如此動感的blog!!!.................................................................                           

法邦法邦 said...

成熟,就是有能力適應生活中的模糊。.................................................................

吳婷婷 said...

人有兩眼一舌,是為了觀察倍於說話的緣故。............................................................

與發 said...

nice to know you, and glad to find such a good artical!..................................................................

舜佳 said...

如果你批評他人。你就沒有時間付出愛............................................................

陳韋夏陳韋夏益東富益東富 said...

faith will move mountains. ..................................................

黃威宇 said...

憤怒,是片刻的瘋狂。..................................................

蔡靜芳蔡靜芳 said...

培養健全孩子最好的方法是父母先成為健全的人。............................................................

錢靜怡錢靜怡錢靜怡 said...

No one knows the weight of anothers burden. ..................................................

王美妹 said...

知識可以傳授,智慧卻不行。每個人必須成為他自己。. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

洪瑋婷洪瑋婷 said...

Poverty tries friends.............................................................

吳怡君吳怡君 said...

真正仁慈的人,會忘記他們做過的善行,他們全心投入現在的工作,過去的事已被遺忘。..................................................

芳童雅童雅 said...

愛,拆開來是心和受兩個字。用心去接受對方的一切,用心去愛對方的所有。......................................................................

凱許倫 said...

Judge not of men and things at first sight................................................

健林林豪 said...

Make hay while the sun shines...................................................

宜明文潔 said...

活是一種鍛鍊靈魂的東西..................................................................

偉曹琬 said...

人生中最好的禮物就是屬於自己的一部份..................................................

said...

用行動來支持你~~~不留言不行!............................................................

王辛江淑萍康 said...

Never put off till tomorrow what may be done today..................................................................

瑰潼 said...

人有兩眼一舌,是為了觀察倍於說話的緣故。............................................................

瑰潼 said...

善言能贏得聽眾,善聽才能贏得朋友。......................................................................

佳陳容 said...

你的部落格感覺很棒,nice job!............................................................

smith said...

hi,thanks for sharing this information. Going public company

smith said...

You really did a great job on that! thanx for sharing this.Go Public on the FSE