And what do those in the VC world have to say about the economic mess created by greedy bankers and the abuse of power from Washington? This segment of the entrepreneurial economy seems to be operating with a “business as usual” outlook according to a post at venturebeat.com. The post includes comments from several tech insiders. For example, here is Guy Kawasaki’s take:
The collapse of greedy banks that loaned money to people who should not have bought homes should be unrelated to venture capital investing. In fact, it should make venture capital a more attractive investment class. But it won’t because it’s all a mental game. When Wall Street goes into a funk, it affects the mood of the venture capital industry. Truly, entrepreneurs and venture capitalists should be worried about what may happen in five years, not five days, but short-term emotions will rule. With regard to entrepreneurs specifically, if the Lehman debacle scares them from starting a company, they were going to fail anyway.
(Thanks to Jim Stefansic for passing this along).
Finding the article a bit ironical, VC are as greedy if not more than the bankers and Wall Street. Only differences are VC works on a longer time frame, grow the startup till it can be listed (meaning investors are stupid enough to think that it is worth what it is worth), the VC will then sell and pocket the huge profits. What happen later depends on the luck of the investors…..