February 26, 2009
- Waltham, MA
To be a VC or not to be a VC? That question was answered with a resounding yes from four veteran Boston area VCs last week at the Dealmakers Breakfast. “Outlook for Venture Capital Investing” was the title of the breakfast panel moderated by Jack Derby, and for these folks the outlook is very good.
All the VC participants with a positive up-beat outlook believe:
• There is light at the end of the tunnel.
• This is the best time to invest.
• Deal flow is not an issue.
• Inventory is needed on the shelf when the market turns around.
On the other hand, they are not throwing caution to the wind. The most telling statement for venture backed companies came from Todd Dagres of Commonwealth Capital Ventures. “Cut all of the fat. Cut some muscle and if you hit the bone, that’s okay,”
Mike Fitzgerald believes “it is the best and worst of time. The greatest challenge being that liquidity is drying up. There isn’t much cash and companies with little cash have to manage even better.” Fitzgerald stressed that companies need to substitute time for capital. Q1 and Q2 will tell us where we stand.
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