With some pressure to publish or perish…
biggest takeaway for me was that there is a continued bubble at the front of the pipe and that’s great for entrepreneurs and everyone other than LPs in vc funds.
There seems to continue to be huge capital available to fund any decent idea even though there are obvious signs these are risky bets – ie. There is no exit other than sale to big player and still few companies reporting big revs and profits.
During the boom I ran an enterprise software company. The big difference was most of us *were* showing big rev numbers. My company did 10 million in first year sales. Because of this there was a frothy public market that was ready to buy IPOs in pre profits companies.
What’s interesting is that we’re not hearing about many ventures where the vc’s pull the plug. Mayfield did choose to stop funding tribe which is why I took it over along with the lender.
Are there others we’re not hearing about? There must be a ton of companies coming up on second and third rounds. I’d love to understand the vc rationale in funding them. Many may be taking similar approaches to those that survived the bust in stockpiling money and waiting for a business to evolve.
I’d love to hear any stories you’ve heard about companies reaching profits or how they’re faring without. Sent wirelessly via BlackBerry from T-Mobile.