Tags: entrepreneurs, silicon valley, startups, venture capital
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Cnet has a story headline “Is venture capital’s love affair with Web 2.0 over?”– Ironic??
According to this massive trend 2007 deals are down an amazing amount – total deal numbers down an amazing 5. “Web 2.0 deals in the Bay Area actually dropped from 74 deals in 2006 to 69 last year” -Wow.
Entrepreneurs are starting companies that require less capital and no venture capital at all. Maybe entrepreneur’s love affair with venture capital is over. It’s clear to me that entrepreneurs that I talk to are bootstrapping longer and financing ventures themselves.
I hardly think that a reduction of 5 deals validates a venture capitalist trend. Most VCs are not that savvy on Web 2.0 and are generally skeptical on web deals. The ones that do get it are doing many deals. Jeff Clavier has already pounded out 16+ deals in his new fund.
Entrepreneurs Beware. Yahoo Buyout Could Kill Technology Startups? Advice: Be an Arms Dealer. February 2, 2008Posted by John in Technology.
Tags: entrepreneurs, entrepreneurship, fred wilson, microsoft, silicon valley, startups, venture capital, yahoo
Entrepreneurs beware Microsoft buying Yahoo could shut down the tech startup scene. It could send the startup climate back to 2001 levels – nuclear winter shut down. I lived through 2001-2004. It was ugly.
Brad Burnham has hit on a narrow topic about the downside of the Yahoo buyout for Silicon Valley. Brad’s story is very relevant with ‘macro’ implications to the tech world not just Silicon Valley. This deal could cripple startup activity.
Efficiency for Microsoft means leverage with suppliers. Translation: Startups are suppliers and Microsoft just became Walmart. This could have a chilling effect on the VC and tech investment community. This new industry structure puts even more of an emphasis on ‘hits’ or category specific deals. If the Venture Capitalists are confused today can you imaging what they will do going forward. This could get ugly.
Advice for Technology Startups and VCs: Understand where your company is in the pecking order in this war. If you’re not an arms dealer then you might want to rethink your strategy.