Skip to: Content
Skip to: Site Navigation
Skip to: Search

November 22, 2008 4:07:52 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Economy Has Venture-Capital Scene Looking in Mirror

Posted May 12, 08 11:56 AM CDT in Business 

(Newser) – Economic troubles that have meant fewer IPOs and less-lucrative mergers have the venture-capital industry in upheaval, the San Jose Mercury News reports after last week's Silicon Valley gathering of VC players. Many believe the moneyed backers must treat entrepreneurs better for prospects to remain lively. Yet, though returns have turned negative, the firms are still attracting investors. 

“I think the headline for the audience is that the money is not going away,” said a speaker at one panel. To which another replied, “It will eventually if the returns aren't good enough.”

Source San Jose Mercury News

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Startups Seek Ways Around Venture Capital

    Nov 12, 08 4:25 PM CST
    Startups Seek Ways Around Venture Capital While Wall Street investors have taken advantage of the tanking economy to nab low-priced stocks, Silicon Valley’s venture capitalists have likewise enjoyed a buyer’s market, demanding larger ownership stakes in startup outfits in exchange for their coveted funds. Companies like Twitter—initially funded with $22 million in venture capital—are now looking for alternative revenue to avoid being devalued, Bloomberg reports. More »

  • Wall Street's Woes Will Breed Cheaper Gadgets

    Oct 7, 08 7:16 PM CDT
    Wall Street's Woes Will Breed Cheaper Gadgets Wall Street's current tremors will be felt in Silicon Valley for years, "worst case, the next decade," John Biggs writes in TechCrunch, and that could be good news for gadget freaks. Though pinched consumers probably won't "be able to stomach even mild extravagances," luxury brands—Apple included—will likely slash prices and make cheaper products.
    More »

  • This Xoogler Might Be the Next Bill Gates

    Oct 4, 08 2:40 AM CDT
    This Xoogler Might Be the Next Bill Gates In the past few years, Google has lost some serious firepower to the startup frontier, Luke Dittrich writes in Esquire. With self-styled Xooglers  providing the brain power not only for two dozen or so startups, but for the venture-capital firms that fund them, it’s likely “the next big thing to come out of Google won't come out of Google at all.” More »

  • Wall Street Woes Will Wallop Tech Sector

    Sep 16, 08 2:02 AM CDT
    Wall Street Woes Will Wallop Tech Sector Troubles hitting the Wall Street giants promise particularly dark days ahead for the tech business world, analysts tell CNET News. The problems are bound to stifle mergers and acquisitions in the tech industry and further dampen the market for initial public offerings. IPOs have already slowed to a trickle—and may soon grind to a halt.
    More »

  • Start-Ups Hungry for Cash in IPO Drought

    Jul 1, 08 1:49 PM CDT
    Start-Ups Hungry for Cash in IPO Drought Silicon Valley IPOs are suddenly an extremely rare beast, driven nearly to extinction by the sputtering economy, the Wall Street Journal reports. The first quarter has seen just five venture-backed offerings, compared to 31 last quarter. “The economics have been destroyed for small-cap IPOs,” says the co-founder of Revolution Partners, one of a glut of new investment banks stepping in to help. More »

The recession has led to fewer IPOs, and smaller mergers.   (Shutterstock)
Money is getting tight for venture capital.   (Index Open Stock)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 3)

Tags

recession • Silicon Valley • venture capital • entrepreneurs • venture capitalists


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »