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.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
startups and lawyers
http://www.pbs.org/cringely/pulpit/pulpit20030904.html
[ link to this | view in chronology ]
Re: startups
[ link to this | view in chronology ]
VC climate
[ link to this | view in chronology ]
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?
[ link to this | view in chronology ]