Venture Capital is Dead…My Ass

I just searched Venture Capital is Dead…a plethora of links.

If you search ‘I Love Venture Capitalists’, you get this ugly mug as the top link (made you click Paul). As it turns out, Paul who is a trusted advisor to Stocktwits, LOVED VC’s at what could turn out to be the bottom.

Read the post.

The VC’s get panicked like you and I, but only because thir investors panic. Other than that, there are great ones and awful ones, but 10 years of blah returns have obviously cleaned out a lot of the fluff.

Right now, VC’s are spending again, and it’s early. In my angel portfolio alone (the one that passed on $ZYNGA $TWIT and $4SQ), over $50 million has recently been raised by companies I invested in with pre money rounds of $3 million or less over the last three years.

Now, you can use that as a sign of the armageddon or that I am a genius. It’s neither.

VC’s love to put money to work if they know their investors will make the capital call. THAT’S IT. I am not reading tea leaves, I am reading Techmeme.

This is not late stage cycle stuff. This is early stage stuff. Add to this the fact that both freaking $AOL and $YHOO are starting to acquire companies and you have kindling for some bear whoopass.

Don’t even get me started $FBOOK.

PS – Congrats to my friends and investors at Foundry on another fund closing. Awesome.

PSS – Loving my proper usage of Plethora.

PSSS – Searching for remote Arizona desert land on Zillow in a fit of late night bullishness.

16 comments

  1. raznick says:

    This is off-topic a bit. Do you think facebook would be where it is today if it didn’t take money from clarium? Perhaps, that is a difficult question to answer, but I wonder if the facebook we know today would be anywhere close to where it is w/o the early outside investments.

  2. raznick says:

    This is off-topic a bit. Do you think facebook would be where it is today if it didn't take money from clarium? Perhaps, that is a difficult question to answer, but I wonder if the facebook we know today would be anywhere close to where it is w/o the early outside investments.

  3. Anonymous says:

    be wary of late night bullishness, particularly related to the AZ land. and if you want a better search than Zillow, let me know

  4. Kylepearson says:

    be wary of late night bullishness, particularly related to the AZ land. and if you want a better search than Zillow, let me know

  5. Dave Pinsen says:

    Congratulations on tearing it up with your angel portfolio, Howard. You might be right that there’s plenty of upside for VC investments as big tech companies start putting their cash to work. Still seems to be the same disconnect in the economy though that I blogged about earlier this year (“2010 = 1982 + 1999?”).

  6. Dave Pinsen says:

    Congratulations on tearing it up with your angel portfolio, Howard. You might be right that there's plenty of upside for VC investments as big tech companies start putting their cash to work. Still seems to be the same disconnect in the economy though that I blogged about earlier this year (“2010 = 1982 + 1999?”).

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