Comments on: VentureSource: Worst venture liquidity in five years http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/ News About Tech, Money and Innovation Wed, 25 Nov 2009 06:07:42 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Elliott Dahan http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874671 Elliott Dahan Sun, 04 Jan 2009 06:36:20 +0000 http://venturebeat.com/?p=102201#comment-874671 Peter - <br><br>This is not a canned comment. I wrote this in response to Anthony's post.<br><br>And "yes", I believe in the need and opportunity of The START Fund. I am hoping to implement this Seed fund decdicated to working with, supporting and compensating the Seed Community. Peter –

This is not a canned comment. I wrote this in response to Anthony's post.

And “yes”, I believe in the need and opportunity of The START Fund. I am hoping to implement this Seed fund decdicated to working with, supporting and compensating the Seed Community.

]]> By: Peter http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874670 Peter Sat, 03 Jan 2009 15:00:23 +0000 http://venturebeat.com/?p=102201#comment-874670 Elliot, is this a canned comment you're using to promote this "START" fund? Elliot, is this a canned comment you're using to promote this “START” fund?

]]> By: JoeDuck http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874676 JoeDuck Sat, 03 Jan 2009 12:26:23 +0000 http://venturebeat.com/?p=102201#comment-874676 Anthony it would be nice to see more measures of the total investment in all startups or a cross sections of startups over various periods of time. I'm concerned that the stories always feature the big winners and thus I think inflate the actual VC returns which I think are very negative these days as companies go belly up. Anthony it would be nice to see more measures of the total investment in all startups or a cross sections of startups over various periods of time. I'm concerned that the stories always feature the big winners and thus I think inflate the actual VC returns which I think are very negative these days as companies go belly up.

]]> By: Dave McClure http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874675 Dave McClure Sat, 03 Jan 2009 12:00:27 +0000 http://venturebeat.com/?p=102201#comment-874675 anthony: while the top-end is interesting, the median case (for exit via smaller M&A) is possibly more educational. might be useful to look at distribution curve / graph of exits on quarterly basis, and then compare median exits over time.<br><br>guessing overall trend is towards smaller median exit, which might be ok for angels & smaller VCs, not so great for traditional VC. also interesting if median skewed down a lot or a little in Q3-Q4/08, and going forward in 2009.<br><br>to summarize: median case may tell us more than outliers. anthony: while the top-end is interesting, the median case (for exit via smaller M&A) is possibly more educational. might be useful to look at distribution curve / graph of exits on quarterly basis, and then compare median exits over time.

guessing overall trend is towards smaller median exit, which might be ok for angels & smaller VCs, not so great for traditional VC. also interesting if median skewed down a lot or a little in Q3-Q4/08, and going forward in 2009.

to summarize: median case may tell us more than outliers.

]]> By: Elliott Dahan http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874674 Elliott Dahan Sat, 03 Jan 2009 07:44:18 +0000 http://venturebeat.com/?p=102201#comment-874674 Anthony - <br><br>Perfectly understandable.<br><br>Have a good New Year and keep up your good writing - I really enjoy your work<br><br>Elliott Anthony –

Perfectly understandable.

Have a good New Year and keep up your good writing – I really enjoy your work

Elliott

]]> By: Anthony Ha http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874673 Anthony Ha Sat, 03 Jan 2009 07:42:10 +0000 http://venturebeat.com/?p=102201#comment-874673 OK, fair enough. It would have been nice if you had made the connection more explicit in your initial comment, but I probably overreacted. OK, fair enough. It would have been nice if you had made the connection more explicit in your initial comment, but I probably overreacted.

]]> By: Elliott Dahan http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874672 Elliott Dahan Sat, 03 Jan 2009 04:54:15 +0000 http://venturebeat.com/?p=102201#comment-874672 Anthony - <br><br>I believe my post is very relevant to your post.<br><br>By strengthening the Seed level, you strengthen the potential for successful exits.<br><br>But, you cannot expect the Traditional VC stage to work with, support or compensate the existing Seed Infrastructure (incubators, tech transfers, economic development agencies, etc.) You cannot expect the Angel level of investing to efficiently source, screen and provide oversight to a Seed Community with no geographic constraints.<br><br>First, strengthen the Seed Level<br><br>Second, "clean out" the traditional VC level<br><br>Thanks Anthony –

I believe my post is very relevant to your post.

By strengthening the Seed level, you strengthen the potential for successful exits.

But, you cannot expect the Traditional VC stage to work with, support or compensate the existing Seed Infrastructure (incubators, tech transfers, economic development agencies, etc.) You cannot expect the Angel level of investing to efficiently source, screen and provide oversight to a Seed Community with no geographic constraints.

First, strengthen the Seed Level

Second, “clean out” the traditional VC level

Thanks

]]> By: Anthony Ha http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874669 Anthony Ha Sat, 03 Jan 2009 03:21:01 +0000 http://venturebeat.com/?p=102201#comment-874669 This barely seems relevant to my post at all. Am I missing something? This barely seems relevant to my post at all. Am I missing something?

]]> By: Anthony Ha http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874667 Anthony Ha Sat, 03 Jan 2009 02:55:15 +0000 http://venturebeat.com/?p=102201#comment-874667 I agree that this just confirms an existing trend -- one that VentureBeat has covered extensively -- but the data itself is new, and was just released today. You can't make an apples-to-apples comparison between 2007 and 2008 until 2008 is over. I agree that this just confirms an existing trend — one that VentureBeat has covered extensively — but the data itself is new, and was just released today. You can't make an apples-to-apples comparison between 2007 and 2008 until 2008 is over.

]]> By: Elliott Dahan http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874668 Elliott Dahan Sat, 03 Jan 2009 02:36:00 +0000 http://venturebeat.com/?p=102201#comment-874668 The Venture Risk Investing industry is divided into 3 distinct groups: (1) Seed/Startup; (2) Traditional VC and (3) Exit<br><br>They are systemically, operationally and attitudinally different. They have different metrics for acceptance and success; funding, oversight, sourcing, profitability and, most importantly, infrastructure.<br><br>What is needed is a dedicated effort to work with, support and compensate the Seed Infrastructure (Incubators, Economic Development Agencies, Tech Transfers). This infrastructure already exists and provides the efficient sourcing, screening and post-investment oversight needed to develop Series A worthy companies. What is needed is a dedicated effort that is not geographically constrained. What is needed is a thorough Virtual Incubation system that brings both Community and Collaboration to all elements of the total Investing community.<br><br>By dedicating a private/public collaboration to increasing the value and viability of early stage companies you are also increasing their valuation for their Series A round; thereby leveling the playing field with what will be a smaller group of Traditional VC funds.<br><br>This Seed dedicated effort can take two forms:<br><br>(1) Standalone Fund<br>(2) Operating Division of a Traditional VC Firm<br><br>Please review the powerpoint – The START Fund - <a href="http://www.slideshare.net/ElliottDahan/start-fund-jan2009-presentation/" rel="nofollow">http://www.slideshare.net/ElliottDahan/start-fu...</a><br><br>I look forward to all comments.<br><br>Thank you,<br><br>Elliott Dahan<br><a href="mailto:Elliott@thegrowthgroup.com" rel="nofollow">Elliott@thegrowthgroup.com</a> The Venture Risk Investing industry is divided into 3 distinct groups: (1) Seed/Startup; (2) Traditional VC and (3) Exit

They are systemically, operationally and attitudinally different. They have different metrics for acceptance and success; funding, oversight, sourcing, profitability and, most importantly, infrastructure.

What is needed is a dedicated effort to work with, support and compensate the Seed Infrastructure (Incubators, Economic Development Agencies, Tech Transfers). This infrastructure already exists and provides the efficient sourcing, screening and post-investment oversight needed to develop Series A worthy companies. What is needed is a dedicated effort that is not geographically constrained. What is needed is a thorough Virtual Incubation system that brings both Community and Collaboration to all elements of the total Investing community.

By dedicating a private/public collaboration to increasing the value and viability of early stage companies you are also increasing their valuation for their Series A round; thereby leveling the playing field with what will be a smaller group of Traditional VC funds.

This Seed dedicated effort can take two forms:

(1) Standalone Fund
(2) Operating Division of a Traditional VC Firm

Please review the powerpoint – The START Fund – http://www.slideshare.net/ElliottDahan/start-fu...

I look forward to all comments.

Thank you,

Elliott Dahan
Elliott@thegrowthgroup.com

]]> By: Jonathan Aberman http://venturebeat.com/2009/01/02/venturesource-lowest-venture-liquidity-in-five-years/comment-page-1/#comment-874666 Jonathan Aberman Sat, 03 Jan 2009 01:55:31 +0000 http://venturebeat.com/?p=102201#comment-874666 This is not really new information, but is a good reminder of what we in the Venture Community already know. What this article does remind us though is that often when something makes its way into print or the blogosphere it is referenced past events and making them current again -- something that reaffirms a negative cycle. Those of us that have money to deploy are looking forward and asking ourselves a few key questions: (i) what types of companies are going to be attractive to investors in three to five years, (ii) are our businesses properly configured to take advantage of those opportunities and (iii) how can we help entrepreneurs take the risk and succeed during a time where the negative energy is pervasive. This is not really new information, but is a good reminder of what we in the Venture Community already know. What this article does remind us though is that often when something makes its way into print or the blogosphere it is referenced past events and making them current again — something that reaffirms a negative cycle. Those of us that have money to deploy are looking forward and asking ourselves a few key questions: (i) what types of companies are going to be attractive to investors in three to five years, (ii) are our businesses properly configured to take advantage of those opportunities and (iii) how can we help entrepreneurs take the risk and succeed during a time where the negative energy is pervasive.

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