Comments on: The credit crunch could help venture capitalists

By: Tech and the Economy? A Straight Answer is Hard to Find « HellaFrank

Tech and the Economy? A Straight Answer is Hard to Find « HellaFrank — Fri, 11 Apr 2008 14:30:02 +0000

[...] about why the credit crisis would help venture capital. The New York Times and Silicon Valley blog VentureBeat also reported on his theory that venture capital is not based on credit and debt, therefore, [...]

By: sweet-xr

sweet-xr — Wed, 26 Mar 2008 04:49:59 +0000

Sorry, but what is mariburjeka?

Jane.

By: Ben

Ben — Thu, 24 Jan 2008 19:15:16 +0000

Bob,

VCs (unlike large private equity/buyout shops) do not borrow money (i.e. leverage) to fund companies.

Will that change though? http://www.newsgroper.com/ben-bernanke/2008/01/24/avoid-recession-brass-balls/

By: Who Cares If Corporate Valuations Are Crazy? - GigaOM

Who Cares If Corporate Valuations Are Crazy? - GigaOM — Thu, 24 Jan 2008 08:01:07 +0000

[...] Thursday, January 24, 2008 at 12:00 AM PT Comments (0) The credit crunch may not have fazed tech startups much, but the recent turmoil in the global financial markets is worrying. Whether [...]

By: Bob Morris

Bob Morris — Sat, 25 Aug 2007 14:04:51 +0000

VCs need to borrow money to fund startups. The cost of borrowing is going up and terms are tightening. It’s hard to see how the credit crunch will help startups.

By: SG

SG — Sat, 25 Aug 2007 03:51:46 +0000

The fact that going to a VC firm is only an option becuase borrowing money for a startup as debt is getting difficult is a very sad condition.
Entreprenuers generally go to VC’s because VC’s have the connection that would help in the business for various types of relationship building include new/potential customers, new business partners, exit, etc.

Seems like VC’s don’t bring anything to the camp if all they bring is money.

By: How the Credit Crunch Could be Good for Ventrue Capital and Other Sectors

How the Credit Crunch Could be Good for Ventrue Capital and Other Sectors — Sat, 25 Aug 2007 02:50:53 +0000

[...] There is discussion tonight around the blogosphere regarding the potentially positive impact of the credit crunch on the venture capital flows. [...]

By: Subprime Credit could help Venture Capital | TechWag

Subprime Credit could help Venture Capital | TechWag — Fri, 24 Aug 2007 23:13:38 +0000

[...] Companies might find themselves between a rock and a hard place, with the only player on the block being a VC company. Leveraged investing strategies were perceived as less risky. For the last five years, he watched the skyrocketing returns from hedge funds and buyout funds “with jealousy,” he says. However, now we’ve just witnessed a sharp shift in perception of the risk for those leveraged investing strategies. Investors will return to things like technology, technology IPO market, which is what really drives venture returns, and a reinforcing lust to invest in start-ups. Investors have finally demonstrated a willingness to buy technology IPOs. There were some 36 technology IPOs in 2006. He expects to see that number double this year: “In the middle of the liquidity crisis, VMWare went public, traded up sharply and stayed there.” Source: Venture Beat [...]

By: JB

JB — Fri, 24 Aug 2007 22:12:00 +0000

I doubt that a global credit crunch will leave tech and venture capital unscathed. Remember that when dot-coms were crumbling over 2000, networking and telecom were considered “safe” and only the dot-coms were flaky. Venture capital was flowing freely into optical companies in 2000.

There was a period Cisco acted like the dot-com implosion wouldn’t impact them and everyone believed them too. This time, it is mortgage and tech. Unrelated areas, so shouldn’t be any impact – that is the argument. I say tell me that in spring of 2008.

By: Victor Karamalis

Victor Karamalis — Fri, 24 Aug 2007 21:54:36 +0000

I touched on this subject last Friday on my post about VMWare’s IPO putting tech back on the investors’ horizons. I also saw the housing market implode as witnessed first hand outside of the Bay area. It’s time for startups to take advantage of this situation.

By: VentureBeat » The credit crunch: A capital bypass for life sciences?

VentureBeat » The credit crunch: A capital bypass for life sciences? — Fri, 24 Aug 2007 20:03:12 +0000

[...] at VentureBeat proper, Matt highlights a theory advanced by venture capitalist Keith Benjamin, who argues that the credit crunch now [...]