VCs are the red herring.
VC spending will never be the same for the markets as before the boom. New issues won't pop as hard because the underwiters aren't going to get to underprice issues to get momentum. The requirements to go public will be more stringent, so companies will be bigger and more established before they go public, so less pop. There will be a suspicion in the market regarding new issues and analyst touting will fall on deaf ears, so less pop.
Actually, VCs probably still invest in companies right now, since they always get a great deal, it's just that we can't make money off them.
Anyway, VCs did not really make the boom by themselves, it took the underwriters, analysts, and the market too. The pieces of that whole system are either gone or on their way out.
Bottom line is that VC activity is a red herring.
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<<There is little hope of VC activity moving in a meaningful, positive direction this year. >>
don't be so sure... bmwusa.com
<<What is that for?>>
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It was a joke. Like the only meaningful VC spending will be on new luxury cars. *sigh* |
