Comments on: 2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3) http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/ Entrepreneur turned VC Mon, 14 Nov 2011 23:37:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: ElReyalto http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-16766 ElReyalto Thu, 26 Aug 2010 02:55:47 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-16766 As a startup veteran who was unemployed for awhile until giving up to start my own consulting biz, I agree that the jobs issue is critical to all of this. I've also seen first-hand overfunding in action during the .com insanity and agree it'scan be even more destructive than under-funding. The problem is that a lot of companies are hoarding cash and not reinvesting it back into new hires. Eventually, this is going to turn into a vicious circle as employees are being stretched beyond belief right now because "times are tough." <br><br>My fear is that when conditions do improve a bit that we will see one of the largest shifts of job movement ever, which will decimate companies that hoarded their cash. The startup world is a bit more used to this given employee tenures tending to be a bit shorter but even they are in for a rude awakening soon. As a startup veteran who was unemployed for awhile until giving up to start my own consulting biz, I agree that the jobs issue is critical to all of this. I've also seen first-hand overfunding in action during the .com insanity and agree it'scan be even more destructive than under-funding. The problem is that a lot of companies are hoarding cash and not reinvesting it back into new hires. Eventually, this is going to turn into a vicious circle as employees are being stretched beyond belief right now because “times are tough.”

My fear is that when conditions do improve a bit that we will see one of the largest shifts of job movement ever, which will decimate companies that hoarded their cash. The startup world is a bit more used to this given employee tenures tending to be a bit shorter but even they are in for a rude awakening soon.

]]> By: dshen http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-16764 dshen Thu, 26 Aug 2010 02:18:44 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-16764 So accurate - how can any kind of recovery be happening when so many people are unemployed? The cheerleaders in our government should be ashamed to keep throwing all the positive smoke at us.<br><br>Startups need to last as long as possible in today's climate - you won't be able to raise another round if your metrics suck; consumers aren't as willing to part with their cash so making money is harder; companies are preparing for consumers not spending so they pull back and b2b startups also get affected. Only possible solution is to last as long as possible - plan for 2-3 years at least. So accurate – how can any kind of recovery be happening when so many people are unemployed? The cheerleaders in our government should be ashamed to keep throwing all the positive smoke at us.

Startups need to last as long as possible in today's climate – you won't be able to raise another round if your metrics suck; consumers aren't as willing to part with their cash so making money is harder; companies are preparing for consumers not spending so they pull back and b2b startups also get affected. Only possible solution is to last as long as possible – plan for 2-3 years at least.

]]> By: Michael Yavonditte http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-16763 Michael Yavonditte Thu, 26 Aug 2010 02:02:43 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-16763 Sage advice. It's really hard to be optimistic and you are right that your job is not to be a cheerleader. Unfortunately, I predicted the first housing crisis in 2006. I wasn't smart enough to avoid buying a house at that time. In fact, I bought two house between 2006 and 2007, both of which are slightly under water today.<br><br>The economy is still very distressed. It's hard to know what will happen. Any founder/CEO out there should plan for the worst, especially if they haven't reached product market fit by now. Spend money wisely. Common sense stuff.<br><br>If you are doing really well right now then my sense is that you will continue to do well sans a full market crash. Sage advice. It's really hard to be optimistic and you are right that your job is not to be a cheerleader. Unfortunately, I predicted the first housing crisis in 2006. I wasn't smart enough to avoid buying a house at that time. In fact, I bought two house between 2006 and 2007, both of which are slightly under water today.

The economy is still very distressed. It's hard to know what will happen. Any founder/CEO out there should plan for the worst, especially if they haven't reached product market fit by now. Spend money wisely. Common sense stuff.

If you are doing really well right now then my sense is that you will continue to do well sans a full market crash.

]]> By: scrivens http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-16756 scrivens Wed, 25 Aug 2010 19:49:34 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-16756 Yeah, still relevant. The UK is in a pretty terrible shape for VC fundraising. But the Europeans are moving in and snapping up some investment bargains. It's a shame to see the Anglo-Saxon model under the cosh.. Yeah, still relevant. The UK is in a pretty terrible shape for VC fundraising. But the Europeans are moving in and snapping up some investment bargains. It's a shame to see the Anglo-Saxon model under the cosh..

]]> By: David Semeria http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-1394 David Semeria Thu, 08 Oct 2009 12:49:28 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-1394 Thanks Mark Thanks Mark

]]> By: David Semeria http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-13500 David Semeria Thu, 08 Oct 2009 12:49:28 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-13500 Thanks Mark Thanks Mark

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-1392 msuster Thu, 08 Oct 2009 09:57:24 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-1392 Thanks, John. Yes, it seems that social shopping has potential but thus far hasn't seemed to live up to its hype. It seems that it should work in theory. But I don't think ThisNext, for example, have really killed it. Thanks, John. Yes, it seems that social shopping has potential but thus far hasn't seemed to live up to its hype. It seems that it should work in theory. But I don't think ThisNext, for example, have really killed it.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-13496 msuster Thu, 08 Oct 2009 09:57:24 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-13496 Thanks, John. Yes, it seems that social shopping has potential but thus far hasn't seemed to live up to its hype. It seems that it should work in theory. But I don't think ThisNext, for example, have really killed it. Thanks, John. Yes, it seems that social shopping has potential but thus far hasn't seemed to live up to its hype. It seems that it should work in theory. But I don't think ThisNext, for example, have really killed it.

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-1393 msuster Thu, 08 Oct 2009 09:55:44 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-1393 David, the golden rule that VCs are looking for these days is 18 months cash. 12 months means you'll be raising money again in 6 months and 24 months means you have too much cash that you're more likely to spend too quickly! David, the golden rule that VCs are looking for these days is 18 months cash. 12 months means you'll be raising money again in 6 months and 24 months means you have too much cash that you're more likely to spend too quickly!

]]> By: msuster http://www.bothsidesofthetable.com/2009/10/02/2010-vc-funding-outlook-for-startups-prepare-for-winter-part-33/comment-page-1/#comment-13499 msuster Thu, 08 Oct 2009 09:55:44 +0000 http://www.bothsidesofthetable.com/?p=1029#comment-13499 David, the golden rule that VCs are looking for these days is 18 months cash. 12 months means you'll be raising money again in 6 months and 24 months means you have too much cash that you're more likely to spend too quickly! David, the golden rule that VCs are looking for these days is 18 months cash. 12 months means you'll be raising money again in 6 months and 24 months means you have too much cash that you're more likely to spend too quickly!

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