It’s impossible to be in NYC and not feel the effects of what’s going on with Wall Street, oh yeah, and now the insurance industry. It feels like we’re nationalizing parts of the economy.
But let’s forget about the bigger issues. How will this affect tech, say, specifically venture capital? I spoke yesterday with Moshe Koyfman, who just left IAC to become a principal at Boston-based venture firm Spark Capital.
We talked briefly about what he thinks this means for VCs. On the good side (from his perspective), startups will likely want to raise capital so that they’ll have a savings cushion to get through any hard times. Valuations will likely come down, he expects. And turning companies into money making entities will take longer, because we’re seeing a slower ad market because of the slower economy. (Here at BW, we are officially calling it a recession.) That means it will take longer for companies to get into shape to sell or take IPO.
(Oh yeah, and the number of banks that exist to take companies public has been cut by three this year…)