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Venture Capital in the Downturn: Accelerator or the Brake?

Posted Nov 14, 2008 12:04pm EST by Sarah Lacy in Investing, Internet, Software and Services, Venture Capital, M and A, IPOs, Recession

With a new warchest of $400 million to invest, staid Valley venture firm Morgenthaler Ventures clearly still believes in the Valley. But how do you invest through tough times? Especially when pre-September tech seemed largely recession-proof.

Gary Little joined me in the studio to share some advice he’s learned through a few of the Valley’s cycles. And—believe it or not—he says entrepreneurs actually learned their lesson eight years ago too.

8 Comments

__A_YAHOO_USER__
__A_YAHOO_USER__ - Friday November 14, 2008 12:17PM EST

I WILL DO IT MY WAY.............

Nimesh
Nimesh - Friday November 14, 2008 12:30PM EST

Nice Interview. Everybody needs to hit their breaks on spending. We are in a 2 year recession. Survival is more important then growth right now. Thanks Sarah

Ralph
Ralph - Friday November 14, 2008 01:08PM EST

I just read the article about what the GOVERNMENT is going to do about Mortgage Foreclosures and the Bail Out Money. What about the rest of the tax payers who have been making their mortgage payments, the ones who make sure that their mortgage payments are paid each month and even pay taxes, these people get left out in the cold and the ones who skip on their mortgage payments are rewarded??? What a bunch of melarkey! The ones that build the foundation for the so called Government are the American citizen who pay their bills and taxes, but that's alright, it's just peoples lives the government wants to play GOD with. My suggestion is to split the rest of the bail out money among all the Tax payers and let the people rebuild the economy by investing the money back into the economy. Myself, I would pay off my mortgage and other bills, and I know my immediate family would do the same and some would even buy a house. This is where the American economy is built and made strong, investing in the American people and not bailing out Wall Street and allowing them another opportunity to gamble and loose. These fat cat CEO's that want the bail out should be made to come up with half of the Billions they have and not be given more. I'm sure there are more Tax Paying Citizens who feel the same. I have one more comment or question and that is; what about the people who have already lost their homes and jobs and are living on the streets, is the government going to give them this part of their lives back that they lost as a result of WALL STREETS gamble that didn't work????? I suggest the government take a better look at all the American citizens and do something pretty quick if not tomorrow.

chips
chips - Friday November 14, 2008 01:34PM EST

I'm not looking to get anything from the government, never have and never will!!!

Yahoo! Finance User
Yahoo! Finance User - Friday November 14, 2008 01:43PM EST

We are going to face up to a very dificult and long lasting economic crisis~~~~~ Debt is like any other trap, easy enough to get into, but hard enough to get out of....... We could never learn to be brave and patient, if there were only joy in the world........

asdf
asdf - Friday November 14, 2008 02:20PM EST

Electronics is a maturing technology with slowing inovation. In twenty years I expect it to perform like the present auto industry. The technology party is over. Investors will have to look long and hard at the startup before buying in.

- Saturday November 15, 2008 09:47PM EST

Between optical computing, organic nanowires, and quantum computing, I think calling electronics a maturing technology is misleading at best. When we get electronic paper tell me that won't revolutionize an industry or two. Or how about a computer you pull out of your pocket, and then unfold in to a laptop-like workstation.

angela
angela - Monday November 17, 2008 10:40AM EST

time to start moving forward and tell the people that are in the bad situations they should also.ITs not the goverments responsiblility to save the businesses or people who made these mistakes.If they do bail these people out it will eventually cost all of the american citizens that do pay their taxes and bills on time.The goverments responsiblity is to secure and protect our country,not to help people and companies pay off their BAD decision.

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