jump to navigation

Silicon Valley VCs Are Actively Investing December 2, 2008

Posted by John in Technology.
Tags: , ,
trackback

All the talk about Silicon Valley being dead is bull. In fact many of the top VCs are actively investing like True Ventures, Norwest, Benchmark Capital, Foundation, among others. There are some top tier guys who are really hurting. I’ll post more on that later.

Here is a post from Benchmark partner Bill Gurley. I first met Bill when he was an analyst years ago before he joined Hummer Winblad then Benchmark. Bill not that technical but is very skilled at analyzing and reading the market. I think his views are right on the money (pun intended).

Bill says…
What is driving our enthusiasm to be optimistic while the general perception is that we should be “scared”? Here are four answers on a roll:

1) We make money investing, not sitting on our money. Innovation and disruption are constant and not subject to the whims of the overall economy.

2) We believe that environments like this tend to sort out the true entrepreneurs from the pretenders. When money is easy in Silicon Valley, it tends to attract short-term opportunists looking to make a fast-buck rather than build a lasting company. Only the best entrepreneurs set sail in rough seas like this.

3) We like the probability for startups (especially Series A deals) in this environment. Consider that people are easier to hire and rent is cheap. Incumbents are cutting their R&D budgets, and there will be fewer startups in each space, all of which means less competition. These are good things.

4) Graham and Dodd said it first and best, but one “… should try to be fearful when others are greedy and greedy when others are fearful.” Pretty clear what time it is.

Comments»

1. Jackie Bassett - December 3, 2008

Hey John:

I just saw this release by Better Place -as Chrylser calls for it’s $7B bailout.

“With all eyes on Washington this week, Better Place, working with Governor Linda Lingle, announced a plan to help Hawaii move to the Car 2.0 model of electric cars powered by renewable energy. Hawaii, which has an annual $7 billion addiction to oil, has set a plan to reach 70% renewable energy by 2030, which we think we can help them reach faster. With renewable generation powering cool electric cars – like our Better Place Nissan Rogue demonstration vehicle – Hawaii will serve as a blueprint for the US auto sector’s future.”

While the United States debates a plan to spend $25 billion on Detroit’s Car 1.0 model built on the internal combustion engine!!!

Yes, We know what time it is – time for the real entrepreneurs to fix everything.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: