Despite its alarmist titile, this piece in Silicon Valley Insider, does a good job outlining the 'exposure' of some of the notable venture firms to the Web 2.0 'mischief'. From my perspective, it's heartening to read the article as it highlights that the capital efficiency of internet companies seems, for the most part, to be a core differentiator between the Internet bubble, and the economy bubble we now face.
If this is the worst of it, then the venture community seems to have done a good job at harnessing capital to properly diversify into the myriad of technology arenas, or to hold capital to invest more deeply in winners. Of course, the big test will come in '09 when tough decisions will be made on which portfolio companies to support and which will be left for an inglorious demise.
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