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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. I obviously don’t have a crystal ball so the economy could fare better than my gut, but here’s why I’m cautious for some time in 2010 or early 2011: Why is the future still so unpredictable?

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The Changing Structure of the VC Industry

Both Sides of the Table

When you think about the trends of faster-growing startups due to social networking, credit card enable and mobile first consumers – the reality is that many startups are becoming very large financially before needing to go public. This is a structural shift in our industry few have talked about publicly. The iPhone was released.

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Thoughts on quant approaches to early stage investing

The Equity Kicker

2006-2008 was a mini-bubble period where gen 1 social networks Bebo, Myspace and Facebook were the big story and investor interest in business models was at an all time low.

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Open Source Business Model

SoCal CTO

However, Elgg could power 100,000 networks and it would make no difference - there is no revenue stream as we give everything away under a GPL license. Early Stage Marketing and Branding – Farida Fotouh. Los Angeles Social Media Starters What is Visible Networking?

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How Lemming VCs Cause Venture Recessions

Mucker Lab

Combined with the usual summer slowdown, some are already raising the spectre of 2001 or 2008. Out of hundreds of social networks launched, only one changed the world. As a result, when the public markets turn south in general or in a specific category , early stage entrepreneurs feel the impact almost immediately.

Harvest 60
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Where LinkedIn Works for Me

SoCal CTO

When I recently was looking to find people who had experience with using social networks to reach people for what might be considered guerilla marketing efforts, again LinkedIn worked great. Early Stage Marketing and Branding – Farida Fotouh. Los Angeles Social Media Starters What is Visible Networking?

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Discussion Creation Among Bloggers - LinkedIn, Blogging and Discussion Groups

SoCal CTO

Its also been interesting to see the interaction of tools involved - Social Networking, Blogging and a Discussion Group. The level of resumes we get through our LinkedIn networks is top notch. Weve also found that other social networks such as FaceBook and MySpace to have almost no results when it comes to recruitment.