DISQUS

VentureBeat: Change is in the air for venture capitalists

  • jc heater · 5 months ago
    Disintermediating the VC isn't going to be easy. Innovators should look to customers to finance their business... or is that just too old fashioned? Well, anything is possible on the internet. Even success!

    Wouldn't you rather have a happy customer who is pleased with your product/service than some goof-ball director from the vulture community breathing down your neck? Hail Mary indeed!

    Oh well, so much for that term sheet.
  • elliottdahan · 5 months ago
    "Venture capitalists have started pumping their remaining capital into hundreds of seed and early stage deals, looking for the next big thing. Dollars invested in these opportunities have already jumped from $893 MM to $1.49 billion between Q1 and Q2 of 2009, and there will be more increases in both Q3 and Q4."


    I guess it becomes a matter of definition - "early stage" & an average deal size of $5.6 million does not really make sense. This is really much more of a Growth Stage - a stage where the VCs demand levels of traction. Where money is provided for growth - not innovation or creation.

    The real problem is not in this Growth Stage - it is in the Seed/Startup stage.

    All Seed/Startup companies need two things: Validation and Money.

    Stop worrying about what the VCs will do. If an entrepreneur brings a VC a company with traction and strong potential for growth - the VC will invest.