Comments on: The sky is falling http://startupnorth.ca/2009/08/11/the-sky-is-falling/ Canadian Startup Community Fri, 03 Feb 2012 02:10:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: startupcfo http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-7073 startupcfo Wed, 12 Aug 2009 11:44:52 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-7073 Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals - We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).<br><br>The US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.<br><br>There are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low. Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals – We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).

The US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.

There are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low.

]]> By: startupcfo http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-11258 startupcfo Wed, 12 Aug 2009 11:44:52 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-11258 Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals - We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).<br><br>The US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.<br><br>There are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low. Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals – We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).

The US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.

There are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low.

]]> By: startupcfo http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-8356 startupcfo Wed, 12 Aug 2009 11:44:00 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-8356 Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals - We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).rnrnThe US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.rnrnThere are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low. Hey David, no question, its been a rough two quarters so far in ’09. No surprise when it comes to Canadian VC deals – We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).rnrnThe US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.rnrnThere are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low.

]]> By: startupcfo http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-11260 startupcfo Wed, 12 Aug 2009 11:44:00 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-11260 Hey David, no question, its been a rough two quarters so far in '09. No surprise when it comes to Canadian VC deals - We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).rnrnThe US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.rnrnThere are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low. Hey David, no question, its been a rough two quarters so far in ’09. No surprise when it comes to Canadian VC deals – We can count on one hand the Canadian funds that are doing new deals. Hope that will change over the next few quarters (I expect it will Teralys starts deploying capital).rnrnThe US numbers (15% of $ invested, vs. 42% previously) are alarming though because on the surface this speaks not to an absence of capital, but a lack of interest in our companies. Hope that trend reverses, because for B rounds and up, we need US funding sources.rnrnThere are still bright spots. Deals are getting done. Angels are active. And if you have a young fund (such as Blackberry Partners fund) its a great time to be a VC, because you have lots of capital and values are low.

]]> By: ceben http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-7071 ceben Tue, 11 Aug 2009 20:28:52 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-7071 If only we could quantify the number of projects that don't get off the ground because of the financial and psychological impact that this sort of news has on the entrepreneurial community. If we continue down this path, Canada is certainly at risk of leaving innovation and R&D to the U.S. and those countries that support venture investing and finding ourselves retreating to the traditional approach of creating value by digging for resources in the ground. If only we could quantify the number of projects that don't get off the ground because of the financial and psychological impact that this sort of news has on the entrepreneurial community. If we continue down this path, Canada is certainly at risk of leaving innovation and R&D to the U.S. and those countries that support venture investing and finding ourselves retreating to the traditional approach of creating value by digging for resources in the ground.

]]> By: ceben http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-11257 ceben Tue, 11 Aug 2009 20:28:52 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-11257 If only we could quantify the number of projects that don't get off the ground because of the financial and psychological impact that this sort of news has on the entrepreneurial community. If we continue down this path, Canada is certainly at risk of leaving innovation and R&D to the U.S. and those countries that support venture investing and finding ourselves retreating to the traditional approach of creating value by digging for resources in the ground. If only we could quantify the number of projects that don't get off the ground because of the financial and psychological impact that this sort of news has on the entrepreneurial community. If we continue down this path, Canada is certainly at risk of leaving innovation and R&D to the U.S. and those countries that support venture investing and finding ourselves retreating to the traditional approach of creating value by digging for resources in the ground.

]]> By: jkmacr http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-7068 jkmacr Tue, 11 Aug 2009 16:51:27 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-7068 And to the south and west - Government is killing Silicon Valley innovation<br><a href="http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539" rel="nofollow">http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539</a> And to the south and west – Government is killing Silicon Valley innovation
http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539

]]> By: jkmacr http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-11256 jkmacr Tue, 11 Aug 2009 16:51:27 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-11256 And to the south and west - Government is killing Silicon Valley innovation<br><a href="http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539" rel="nofollow">http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539</a> And to the south and west – Government is killing Silicon Valley innovation
http://blogs.zdnet.com/Foremski/?p=673&tag=nl.e539

]]> By: tpurves http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-7066 tpurves Tue, 11 Aug 2009 14:55:35 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-7066 This has a lot to do with the economy. Venture investing looks a less attractive as an asset class when even the "safe" bets in the large cap equity or debt markets are in turmoil. I think that the first half of this year the bulk of angel or institutional money was being kept far too busy just trying to hang on to their own pants rather than thinking of taking a flyer on high-risk new ventures or new venture funds.<br><br>Public funds might have stepped in to fill the gap like they did in other sectors. But again, it was easier to put money into things they could understand, like saving GM jobs millions of dollars a job, or moving ubisoft employees around the country at >350k a job.<br><br>If there is good news though, it is that even though a bunch of wealth has been destroyed, there's also a lot still on the sidelines, and it's been piling up there. Recent signs of a few deals, and M&As starting to flow here and there is encouraging (not to mention the performance of any index in the last few months). <br><br>Barring further calamities, it would be hard for the deal flow in the second half of this year not to be at least a lot better than the first.<br><br>And from the supply side, there's no excuse but to get out there and build truly awesome stuff despite the impossible. The truly awesome stuff has a tendency to find the smart money (or vice versa) eventually, whatever the economy. This has a lot to do with the economy. Venture investing looks a less attractive as an asset class when even the “safe” bets in the large cap equity or debt markets are in turmoil. I think that the first half of this year the bulk of angel or institutional money was being kept far too busy just trying to hang on to their own pants rather than thinking of taking a flyer on high-risk new ventures or new venture funds.

Public funds might have stepped in to fill the gap like they did in other sectors. But again, it was easier to put money into things they could understand, like saving GM jobs millions of dollars a job, or moving ubisoft employees around the country at >350k a job.

If there is good news though, it is that even though a bunch of wealth has been destroyed, there's also a lot still on the sidelines, and it's been piling up there. Recent signs of a few deals, and M&As starting to flow here and there is encouraging (not to mention the performance of any index in the last few months).

Barring further calamities, it would be hard for the deal flow in the second half of this year not to be at least a lot better than the first.

And from the supply side, there's no excuse but to get out there and build truly awesome stuff despite the impossible. The truly awesome stuff has a tendency to find the smart money (or vice versa) eventually, whatever the economy.

]]> By: tpurves http://startupnorth.ca/2009/08/11/the-sky-is-falling/comment-page-1/#comment-11255 tpurves Tue, 11 Aug 2009 14:55:35 +0000 http://www.startupnorth.ca/2009/08/11/the-sky-is-falling/#comment-11255 This has a lot to do with the economy. Venture investing looks a less attractive as an asset class when even the "safe" bets in the large cap equity or debt markets are in turmoil. I think that the first half of this year the bulk of angel or institutional money was being kept far too busy just trying to hang on to their own pants rather than thinking of taking a flyer on high-risk new ventures or new venture funds.<br><br>Public funds might have stepped in to fill the gap like they did in other sectors. But again, it was easier to put money into things they could understand, like saving GM jobs millions of dollars a job, or moving ubisoft employees around the country at >350k a job.<br><br>If there is good news though, it is that even though a bunch of wealth has been destroyed, there's also a lot still on the sidelines, and it's been piling up there. Recent signs of a few deals, and M&As starting to flow here and there is encouraging (not to mention the performance of any index in the last few months). <br><br>Barring further calamities, it would be hard for the deal flow in the second half of this year not to be at least a lot better than the first.<br><br>And from the supply side, there's no excuse but to get out there and build truly awesome stuff despite the impossible. The truly awesome stuff has a tendency to find the smart money (or vice versa) eventually, whatever the economy. This has a lot to do with the economy. Venture investing looks a less attractive as an asset class when even the “safe” bets in the large cap equity or debt markets are in turmoil. I think that the first half of this year the bulk of angel or institutional money was being kept far too busy just trying to hang on to their own pants rather than thinking of taking a flyer on high-risk new ventures or new venture funds.

Public funds might have stepped in to fill the gap like they did in other sectors. But again, it was easier to put money into things they could understand, like saving GM jobs millions of dollars a job, or moving ubisoft employees around the country at >350k a job.

If there is good news though, it is that even though a bunch of wealth has been destroyed, there's also a lot still on the sidelines, and it's been piling up there. Recent signs of a few deals, and M&As starting to flow here and there is encouraging (not to mention the performance of any index in the last few months).

Barring further calamities, it would be hard for the deal flow in the second half of this year not to be at least a lot better than the first.

And from the supply side, there's no excuse but to get out there and build truly awesome stuff despite the impossible. The truly awesome stuff has a tendency to find the smart money (or vice versa) eventually, whatever the economy.

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