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Posted: 10 March 2004

Is this VC risk aversion due to residual effects of long bear market or a post-Enron fear of failure and concommittant personal risk for directors? (or both)The risks are also increasing as the product lifecycles shorten - on the other hand, the risk may be less as failure happens more quickly! (I suspect though that the total development cost at risk may be the same as before - it is just "spent" faster!)

Venture capital is frozen by fear of failure
Dateline: 15 March 2007
Disappointing employment growth numbers out of the United States highlights the deepening employment crisis. Growth is positive, profits are up but there are few new jobs. American workers are in despair. Bob Halpern of the ‘Let’s keep Americans working’ campaign says "We have seen millions of jobs exported, and one in five graduates are now unemployed. We have heard the arguments of open ...
Aletha Ling Hi Anton, I think the fear is still based on the many massive failures of the bust. In some ways the VC firms have become too big and their investors are pension funds and banks who are looking at the world with new eyes (also given Enron and other stuff). So what they forget is that the VC model is based on huge profits from the one out of ten they get right. So there has to be lots of investment in many ideas/startups to see what kicks in. This is the premise
Posted: 10 March 2004 at 00:00
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