Venture Capital's Coming Collapse
forbes.com
Venture Capital's Coming Collapse
1–10 of 12 posts
Re: Venture Capital's Coming Collapse
#2blame "web 2.0". the VC firms swallowed it lock stock and barrel. where's the "beef" in ning, facebook, scribd, yelp, or slide? and these are the ones that have viable products! lets not even get into the hundreds of small plays in the valley alone whose company name is known only to the VC and the employees. none of them are bringing home the bacon...lets face it, the mid-size independent website gig is not profitable and will not last. in ten years, 99% of this content will come out of google because they are the ones who can make money on it.
it will be amusing watching this fade to white over the minutes as the johnny-come-latelys on HN try to reconcile their revulsion with the lurking suspicion that the train has indeed left the station and the 90s are not coming back
Re: Venture Capital's Coming Collapse
#3"Menlo Managing Director H. DuBose Montgomery says the 1999 fund “has not completed its performance cycle and has several promising portfolio companies with large revenues, which are still private.”"
If this is true, maybe part of a solution is for fund investors to not have to wait for an IPO or acquisition in order to start receiving a return?
Re: Venture Capital's Coming Collapse
#4"Menlo Managing Director H. DuBose Montgomery says the 1999 fund “has not completed its performance cycle and has several promising portfolio companies with large revenues, which are still private.”" If this is true, maybe part of a solution is for fund investors to not have to wait for an IPO or acquisition in order to start receiving a return?
I don't see how they can get a return if there is no IPO or acquisition. The main assets of a startup is the technology, the IP, the business plan, the executive team as well as the staff, consumers & customers, which are not liquid. I've heard about specialized stock exchanges for startups (there's one in ontario), but apart from that, i don't see any solution.
Re: Venture Capital's Coming Collapse
#5"Menlo Managing Director H. DuBose Montgomery says the 1999 fund “has not completed its performance cycle and has several promising portfolio companies with large revenues, which are still private.”" If this is true, maybe part of a solution is for fund investors to not have to wait for an IPO or acquisition in order to start receiving a return?
I don't see how they can get a return if there is no IPO or acquisition. The main assets of a startup is the technology, the IP, the business plan, the executive team as well as the staff, consumers & customers, which are not liquid. I've heard about specialized stock exchanges for startups (there's one in ontario), but apart from that, i don't see any solution.
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
Re: Venture Capital's Coming Collapse
#6Earlier quoted context omitted.
I don't see how they can get a return if there is no IPO or acquisition. The main assets of a startup is the technology, the IP, the business plan, the executive team as well as the staff, consumers & customers, which are not liquid. I've heard about specialized stock exchanges for startups (there's one in ontario), but apart from that, i don't see any solution.
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
Dividends, especially with the current capital gains tax rates, are a wonderful solution. This assumes your investors can be patient enough to receive them.
Re: Venture Capital's Coming Collapse
#7Earlier quoted context omitted.
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
Dividends, especially with the current capital gains tax rates, are a wonderful solution. This assumes your investors can be patient enough to receive them.
Especially if there's no mid-term liquidity event to hasten a startup's ability to actually pay a dividend.
Re: Venture Capital's Coming Collapse
#8Earlier quoted context omitted.
I don't see how they can get a return if there is no IPO or acquisition. The main assets of a startup is the technology, the IP, the business plan, the executive team as well as the staff, consumers & customers, which are not liquid. I've heard about specialized stock exchanges for startups (there's one in ontario), but apart from that, i don't see any solution.
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
but then, you'd require that startups are profitable, right from their first years, which is hardly the case
Re: Venture Capital's Coming Collapse
#9Earlier quoted context omitted.
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
Dividends, especially with the current capital gains tax rates, are a wonderful solution. This assumes your investors can be patient enough to receive them.
I think dividends are interesting for certain classes of startups, particularly during downturns. In boom periods, VCs follow the "dumping" principle. Dump your product for free to as many users as possible to get market share and drown out competitors with a lessor war chest. In a downturn, there should be less of this and more opportunity for businesses to focus on traditional evolution; i.e. getting to profits.
Perhaps we need a new class of VC to accomplish this. Invest in sizes more like an angel but with clear nearer-term profit agenda.
Re: Venture Capital's Coming Collapse
#10"Menlo Managing Director H. DuBose Montgomery says the 1999 fund “has not completed its performance cycle and has several promising portfolio companies with large revenues, which are still private.”" If this is true, maybe part of a solution is for fund investors to not have to wait for an IPO or acquisition in order to start receiving a return?
I don't see how they can get a return if there is no IPO or acquisition. The main assets of a startup is the technology, the IP, the business plan, the executive team as well as the staff, consumers & customers, which are not liquid. I've heard about specialized stock exchanges for startups (there's one in ontario), but apart from that, i don't see any solution.
I think the most meaningful "asset" for a newco is "customers willing to pay for a product or service". For most Internet startups, the tech isn't that novel or patentable.
I do not think you need an open exchange to give returns to your investors: "Think Simple".