So you want to be a VC, eh? (Part 3)

If you take but one thing away from these posts, let it be this:  venture capital is a tough business to get in, be in and stay in. During 2009, the VC industry continued the downsizing that became very visible in mid-2008.  While the global economic issues that surfaced in 2008 (e.g. banking meltdown, subprime market, global economic recession) accelerated the decline and definitely added stresses to the industry, this resizing is a function of the technology bubble bursting several years earlier – also known as the “dot com to dot gone” era.  With many firms that raised money during the bubble unable to raise new funds at this time, a further decline in the number of firms is likely.  While fund raising and investment entered a new range, IPO activity remained at a mere trickle and the acquisition exit marketplace declined both in quantity and quality. Continue reading “So you want to be a VC, eh? (Part 3)”

So you want to be a VC, eh? (Part 2)

So, you still want to be a VC, eh?  I don’t blame you… besides the challenges getting started, venture capital is exciting and provides a level of exposure, both technologically and business-wise, that is hard to match.  And look at some the new friends you get to make… Mark Zuckerberg (Facebook), Marc Pincus (Zynga), Reid Hoffman (LinkedIn), Biz/Ev (Twitter)… you get the point. Continue reading “So you want to be a VC, eh? (Part 2)”

So you want to be a VC, eh? (Part 1)

So, you want to be a venture capitalist, eh?  Why not?  It just sounds cool, right?  Imagine you’re at a typical Silicon Valley meet-up or in your social circle – usually, everyone around you is an “engineer” but you respond with, “I’m a VC!”  All of a sudden, you’ve just moved up their speed dial and your personal stock skyrockets because you have everyone’s attention!  Look at some of the perks associated with being a VC: you have the potential of doing well financially; you can meet some of the brightest minds with amazing ideas that are about to change the world; you can become part of that elite Silicon Valley (and now Silicon Alley, NYC) group like Jim Breyer, Ron Conway, John Doerr and Fred Wilson; you can ‘get in the know’ about what’s happening, and most importantly, be a part of something that can change the entire landscape of how we technologically live our lives!  After hearing all of this, the question could easily change from “why do you want to be a VC?” to “why would you not want to be a VC?”, right?  Ready to sign up?  Slow your roll homeboy… it’s not as easy as you think! Continue reading “So you want to be a VC, eh? (Part 1)”

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