

VC backed technology exits. Time to face the music. - marklittlewood
http://thebln.com/2010/03/20102011-tech-exit-outlook-data-from-the-internet-advice-from-berlin-irving/

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fnid2
This is typical of a stabilized industry. It has happened countless times.
Railroads, petroleum exploration, airlines and now information technology.

VC will move to another industry: green tech, biotech, and nanotech. Web
businesses should focus on more established trajectories that other industries
adhere to. We'd be well served to stop listening to the VCs and start
listening to the 37signals.

People keep coming to me with ideas and I say, "What's your strategy?" They
say, "Get a lot of users, then get VC." I say, "No." They are often deeply
offended, but I simply tell them, if aren't creating something of value that
people are willing to pay for, your chances of survival are slim to none.

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Murkin
There is anothing thing common to all those companies. They are all PUBLIC.

Its true that the IPO market has been quiet lately, but it is waking up. And
there is much more spending money there than in these 10 companie's accounts.

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marklittlewood
They are public companies. That is kind of the point. Very few companies can
achieve that kind of scale and remain private. They are of course not the only
companies that make acquisitions - compare ones with most cash and acquisition
kings - but they provide a good barometer. The companies that have less cash
are also less likely to make acquisitions of more than $100 million which
still means it is hard for VCs to get the fund making exits they need.

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Murkin
What I meant is that M&A is not the only way for an "exit".

The article implies that its the only way for VCs to cash out. But the IPO
market holds a lot more money and opportunities.

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DarrenH
So 99% of the VCs in the world are totally screwed.

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marklittlewood
Yup. Most of the VCs that have raised big funds will of course struggle to
make money.

