The good news is: 'The world has capital coming out its ears'. The even better news is that the guy who said that is the CEO of the Silicon Valley Bank Financial Group, which knows more about the finances of the
The CEO, Ken Wilcox, reckons the crisis in the financial industry has not affected the technology industry, or not yet, and that the credit crunch has not affected lending in the high-tech sector.
"There is no visible impact of any significance on the technology community or the community of venture-backed companies in the
The reason for that is, apparently, because VC-backed companies don't depend on the financial services industry or the housing market.
Silicon Valley VCs have remained able to raise large funds e.g. Sequoia finished raising $930 million earlier this month.
The downside is that the IPO market is shitty.
And the ultimate downside is that the crisis may break out of the financial sector to engulf us all.
Which raises the question: If the crisis engulfs and impoverishes us all, will the financiers still get their bonuses that year?
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Comments (1)
The tech industry has always been out of sync with the rest of the world financially and I happily believe that it's always out front. The finance industry was fed by the suddenly rich technologists who started buying up real estate when their ship came in in the 80s and 90s. The subsequent tech downturn was the beginning of the end for the real estate boom.
But I'm starting to see real innovators crawling out of the rubble and a few who had their heads in the sand are pulling them out and want to get moving forward again.
My own business has been in the dumps for about five years and I'm seeing a light at the end of the tunnel.
Posted by Lou Covey | September 30, 2008 5:20 PM
Posted on September 30, 2008 17:20