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Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains. Watch the market closely.

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

David's firm most recently participated in the $77 million second round financing of SoFi, a one year old startup focusing on student loans. I suppose, more specifically, the bubble ended in the last two weeks of September--right after this financing. In 2008, people weren't sure if we were heading into a complete financial collapse.

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Excited about hackNY’s funding and growth

This is going to be BIG.

Back at the end of 2008, when the economy was in the tank, and funding was tough to come by, NYC Seed, a small local fund with some government and local academic backing supported my startup, Path 101. That additional financing enabled Hilary Mason, our Chief Scientist at the time, to fully commit to moving to NYC.

pitching 267
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I said, “It’s much easier now than it was in 2008/09.&# And time is the enemy of all deals so start sooner rather than later, as anybody who was planning to raise in October 2008 will tell you. Or worse yet they may never get financed. That happened a lot in 2002 and again in 2008. That’s a fact.

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This Week in VC – Scott Painter, CEO of Zag & TrueCar

Both Sides of the Table

He’s personally led more than 50 financing rounds. Founded in 2008 in Santa Monica by Ron Goldman (former CRO of shopping.com) and Rahul Sonnad. Incubated by Clearstone Ventures in 2008. Offers two products: Palantir Government and Palantir Finance. It’s part of what makes him so likable. Current round: $4.

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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

So as of 2008 total LP commitments were still at nearly $250 billion. Our current fund was raised in 2008/09.] So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed. The top quartile funds have performed well.

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The Changing Structure of the VC Industry

Both Sides of the Table

The seeds of cheap cloud computing, social networking & mobile were planted and then the 2008 financial crisis brought a hurricane that swept much of the old, dead brush from the venture capital industry and ushered in a new phase perhaps best punctuated by Sequoia’s famous and now ironic presentation “ RIP Good Times.”.

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