

When They Are Throwing Money At You - DanielH
http://www.avc.com/a_vc/2011/01/when-they-are-throwing-money-at-you.html

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3pt14159
Awesome post. Sure wish some of that easy VC money existed in Canada. But
maybe 3 years from now another bubble will pop and Canada will again fail to
notice anything happened.

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beoba
"I have not seen a better time to raise money for web startups since the late
90s."

oh boy...

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tomjen3
The difference is that it is so cheap to do your own startup that you can do
it with or without other people's money. That was not the case 12 years ago.

The second thing is that the rest of the country is in the worst recession in
70 years - if you are not going to put your money in tech, where are you going
to put them?

When the recession ends, money will flow out of tech and into the general
market, but that is going to take time and is unlikely to be a sudden rush,
more of a slow stream.

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chailatte
1.) Price of starting a startup has nothing to do with overvaluation of
companies and the corresponding investment into those companies, which defines
a bubble. Such as "oh I'm sure that those photo-sharing apps will find a
revenue model eventually", etc.

2.) We're in a great depression. Not a run-of-a-mill recession. And "if you
are not going to put your money in tech, where are you going to put them?" is
precisely what a bubble mentality is.

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tomjen3
1) Price has a lot to do with how softly we land. The reason the bubble became
as infamous as it did was the aftermath, not so much the bubble.

I am not an economists, but it doesn't seem to be a depression from where I am
sitting - people don't walk in thread-bare clothing, nor are there "no help
wanted signs".

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pedalpete
How many people are in the position where they are getting money thrown at
them, vs. people who are looking for funding but can't get any?

What does that say about the perspective of the funder vs the perspective of
the fundee

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eru
Do you know how to start a poll?

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jeandenis
"I've come to believe that entrepreneurs putting away some money to protect
the downside is largely a good thing. It allows them to take bigger risks and
play for more upside."

One of the best rationales I've encountered to support the recent trend of
entrepreneurs selling some of their shares in later funding rounds.

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fooandbarify
Great post. I sometimes (especially recently) get the impression that startups
have been playing up overblown valuations as some sort of marketing tactic.

