Thursday, October 1, 2009
Insights and Opinions: The Great VC Ice Age Is Thawing
For our Insights and Opinions section today, we have an article from Mark Suster of GRP Ventures, who talks about the great "VC Ice Age" triggered in September of 2008, and how it's started to thaw (a little bit).
When venture capitalists scale back investing activities it can be very swift and leave many companies that are in the process of fund raising hung out to dry. Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. I would argue that the shut-down of September 2008 was equally severe yet there are signs that this "VC Ice Age" has begun to thaw.
But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. (Continued)
Read Mark's full article, The Great VC Ice Age Is Thawing (for Now).