Venture Capitalists' Forecast Is Pessimistic

from the time-to-be-optimistic dept

Around here, it’s a pretty common refrain that “venture capitalists are sheep”. Many VCs will admit that themselves. They have a tremendous herd mentality, and that’s (generally) what leads them to make huge collective mistakes in judgment (see 1998-2000 for an example). Now, here’s an article saying that we should be worried about the future of technology investing because VCs are pessimistic and don’t see a real upturn for at least two or three years. There are also some other examples in the articles of problems VCs or VC funded companies have had recently. As far as I’m concerned, this is a good sign. VCs were amazingly optimistic right up through the bubble bursting, so I don’t put too much weight in their predictive abilities for the overall market. I also think that the less attention that is paid to what VCs are saying is going to be big, means that more entrepreneurs get to work on projects that they, themselves think are going to be big. In the grand scheme of things, if we’re going to get the technology industry growing again, I’d rather have entrepreneurs experimenting than VCs pontificating.


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Comments on “Venture Capitalists' Forecast Is Pessimistic”

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1 Comment
lorenzo says:

they might be wrong but stll ...

if you need cash now it matters whether VCs are pessimstic or not.
I am sure we have made the bottom, and I have plenty of reasons to believe it (not last wishful thinking …) but still, with revenues and customers growing by the month and, we see VC interest and willingness to invest goes down steadily.
They might be wrong but we probably won t be around when it is proved they are, if they are…
…never heard of self-fulfilling prophecies ?

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