VCs Are Still Getting More For Their Money
from the at-the-bottom dept
All the stories suggest that venture capitalists are really opening up their wallets again (though not always intelligently). However, if you're out their hunting for venture money right now, it sounds like many VCs are still using the story of the "drought years" to keep valuations low. The latest VentureOne report shows that valuations just keep on declining. If you're a company trying to raise money, I would say that now is probably a bad time. If things really are picking up, then valuations will start to rise also as more VCs fight over the "prime" companies.
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startups and lawyers
http://www.pbs.org/cringely/pulpit/pulpit20030904.html
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Re: startups
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VC climate
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Re: VC climate
Indeed, indeed. I'm reminded of the big online pet store dot com race in 1999. About five of those companies started at the same time. One of them (can't keep it all straight now) raised about $60 million - and when a reporter asked the CEO "what differentiates you from all these competitors" the CEO said "we have raised more money".
Within a month at least two other pet dot coms had raised more.
Anyway, if you really believe that the market is heating up, doesn't it make sense to hold out until valuations are higher?
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