Like Wall Street banks, hedge funds and private equity, the venture capital industry got too fat. Firms currently manage $260 billion, according to the National Venture Capital Association, 14 percent more than during the bubble, and the industry now raises more money than it creates. A shakeout was inevitable. It’s just odd that it took Sequoia’s PowerPoint to get it under way."
Sunday, November 23, 2008
Breakingviews.com - From the Valley Comes a Warning
"Venture-backed exits have fallen 54 percent so far this year. And with the I.P.O. market shut, that has left mergers and acquisitions as the primary value driver. Yet with financing near impossible, even the historical safety of being swallowed by a Cisco or Google has disappeared.
Like Wall Street banks, hedge funds and private equity, the venture capital industry got too fat. Firms currently manage $260 billion, according to the National Venture Capital Association, 14 percent more than during the bubble, and the industry now raises more money than it creates. A shakeout was inevitable. It’s just odd that it took Sequoia’s PowerPoint to get it under way."
Like Wall Street banks, hedge funds and private equity, the venture capital industry got too fat. Firms currently manage $260 billion, according to the National Venture Capital Association, 14 percent more than during the bubble, and the industry now raises more money than it creates. A shakeout was inevitable. It’s just odd that it took Sequoia’s PowerPoint to get it under way."
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After Friday and today I thought we were officially out of a recession.
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