Tag: VC

Is VC overhang a product of low startup costs?

About a week ago I was pondering the issue of VC overhang, and how a few interesting companies have been able to do without venture capital and still find ways to partner and/or exit. I attibuted more of the present course to deal saavy entrpreneurs than anything else, and now I am beginning to rethink that notion a bit more.

VC overhang & the “Topix” phenomena

I have often wondered what would happen when the two mentalities collided. On one hand you have the VCs, with rolodexes a mile deep, including direct lines to the best bankers. Any of the Sand Hill Road crowd will do. On the other, you have the scrappy entrepreneurial types, very creative and driven, and often with a little cashola of their own, garnered from previous deals. Guys like Mark Fletcher, founder of Bloglines, come to mind. Then you throw Google’s rejection of the status quo into the mix, with their dutch auction IPO, and you are left with an interesting dynamic.

Is the venture funded deal becoming a thing of the past? I wonder.