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Originally uploaded by hardaway
Paul Deninger is telling us that for most VCs, the collapse of the debt market means no exit. 90% of VC exits since 2001 have been mergers and acquisitions. With the collapse of the debt market, there will not be many more of those, so we have to re-invigorate the small cap IPO Market. Now listening to Bill Gurley, Roger McNamee, Erik Straser, and Paul — moderated by Mark Stevens of Fenwick & West.
CleanTech is doing well, says Erik Straser.
McNamee agrees with Paul’s conclusions. But he does believe the third wave of web, discovery from trusted sources, is just beginning. Greed, he says, is permanent, though fear is temporary, and Wall Street will come back to small caps. Liquidity will come back, even though the M&A market for ventures through private equity may be heading for a slide.
We are heading into a cycle of unproductive investments, but it’s a short one.
