"Thus, now we are facing a “nuclear winter” (!) where thousands of companies will go out of business."
"The decline in funding for Seed/Early stage companies is firmly in place — we’ve seen a drop in dollars and deals both quarter-over-quarter and year-over-year"
"Median valuations for seed financings in 2011 reached $2.9 million, more than 60% higher than the previous year and the highest total since the dot-com frenzy of 2001, according to industry tracker Dow Jones VentureSource, a unit of Wall Street Journal owner News Corp."
"Corporate deals are going increasingly to later-stage startups and tend to be higher in value, which indicates that corporate venture capital firms are taking fewer risks."
"The bad performance of the Facebook IPO will hurt the funding market for earlier stage startups. No one knows yet how much. Possibly only a little. Possibly a lot, if it becomes a vicious circle."
"The problem with many accelerators right now is that they’re not focused primarily on education or making money as the output/result. Instead, they’re focused on “community building” – particularly in non-startup hubs. I see this as a mistake, because you can’t manufacture communities this way; you need to focus on building successful (and big!) companies that exit, and return some of the cash and know-how back into the ecosystem."
"Suddenly everyone believes that the answer is in accelerators, and we have no [long-term data] to support it,"
— Lesa Mitchell, vice president of advancing innovation at the Ewing Marion Kauffman Foundation, an entrepreneurship advocacy organization in Kansas City, Mo.
(Source: The Wall Street Journal)
"YOU’VE GOT TO BE CAREFUL NOT TO CONFUSE GROWTH WITH VALUE."
"Last year, Accel raised $2.8 billion in fresh capital, while the broader industry contracted. Venture firms started 76 funds last year, the lowest number in 17 years, according to the National Venture Capital Association."
"On a whole, there are very few high tech models that lend themselves to successful (long-term) bootstrapping in today’s highly competitive market. “The best companies use funding to scale rapidly and own the market,” he says, “it’s not a tradeoff.”"
"Berlin’s innovative frenzy is a significant shift for Germans, who tend to be risk-averse. “Obviously after the Second World War, [Germans] didn’t have a great risk appetite—they wanted to focus on rebuilding and being safe,” he says. “I think just now a generation is surfacing that isn’t bothered by the post-World War II mind-set and is instead focused on changing the world."