Oct 10, 2008 View Comments
RIP: Good Times
The last couple of weeks have been tumultuous for the economy at large, and Silicon Valley doesn’t get away scott-free. At the October Boulder Denver New technology Meetup, Mark Soane of Appian Ventures did an overview of how the current conditions may affect the VC market, with a focus on the local Colorado market. Basically, the VCs can still get funding, and have funding available but things will get a little tougher. Some funding in Colorado is moving from software products into renewable energy technologies.
So I was interested to find, via this VentureBeat article, a presentation from Sequoia Capital.
[slideshare id=648808&doc=sequoia-1223625495238287-9&w=425]
Slide 44 outlines, and to a degree reenforces, what Mark had to say. Smaller B/C raises, slower customer uptake and a need to become cash-flow positive. Basically, startups have to become more efficient and focussed (though looking around my local area I’d say that’ll be difficult as the startups here already do a great job at that), and be extremely careful with cash. Common sense to a degree, and certainly the usual reaction to this part of the cycle.
Still, good, free advice. Batten down the hatches and as the last slide in the presentation reminds us, “get real or go home”!
