I'm not very knowledgeable about this, but from the charts I remember seeing during the Sequoia "buckle-up" PowerPoint, isn't it an undisputed fact that there has been an unsustainable boom in VC? Investment in VC has been independent of it's marginal profitability declining due to traditional deals becoming fewer and the recession in general.
The shift in what is funded is no surprise by now. The only questions are 1)if the new bio/green tech startups will be successful, and what the role for VC will be in other sectors and 2)What will happen to the current crop of VC firms now? As flattering as it is that funding in VC has remained constant, is it still a wise investment?
I don't know what the answer to these questions are, but they're the ones that stick in my mind. On a positive note, at least one stressful part of the Internet startup process is in decline.
The shift in what is funded is no surprise by now. The only questions are 1)if the new bio/green tech startups will be successful, and what the role for VC will be in other sectors and 2)What will happen to the current crop of VC firms now? As flattering as it is that funding in VC has remained constant, is it still a wise investment?
I don't know what the answer to these questions are, but they're the ones that stick in my mind. On a positive note, at least one stressful part of the Internet startup process is in decline.