| As you might imagine, the recession and implosion of | | | | can we expect? |
| the credit markets has had just a tad of an effect | | | | 2010 is going to be a brutal year for start-ups. |
| on the venture capital and angel investor markets | | | | Venture capitalists are risk adverse at the moment, |
| this year. For those considering start-up businesses or | | | | which means few will be interested in taking on the |
| expansion, the forecast is decidedly mixed. | | | | risk of a brand new business. Unless you have a |
| I don't have to tell you that the implosion of 2008 | | | | proven record turning start-ups into big winners, don't |
| and 2009 resulted in the near strangulation of many | | | | hold your breath on VC funding. The same goes for |
| niches of the financial markets. Oddly, venture capital | | | | angel investing. The year is going to be about family |
| investing was not one of those markets that was | | | | and friend investing or simply waiting until things turn |
| rocked to its core. Don't get me wrong. Things were | | | | in the venture capital markets. |
| bad, but the downturn in venture capital investing | | | | What about existing businesses looking to take that |
| was in the teens as a percentage instead of a much | | | | next step? VC companies and angels are going to be |
| larger number as with most markets. Angel investing, | | | | much more receptive towards inquiries from |
| sadly, was crushed for the most part with rates | | | | companies that have a history. That doesn't mean |
| dropping by 30 percent or more. | | | | they will be handing over money right and left, but it |
| Well, enough about the past. What about the future? | | | | means you have a chance. As usual, it comes down |
| After all, we've all read and heard we are now in a | | | | to whether your idea seems plausible to them at a |
| recovery from the Great Recession. To say it is a | | | | time when things are very tough. |
| tepid recovery might be a mild understatement. The | | | | The venture capital markets are not dead. Not even |
| simple fact is the financial world is still at a stand still. | | | | close. That being said, there are a lot of fish |
| For example, more banks have failed in 2009 than all | | | | competing for the food in that market. Things will |
| of 2007 and 2008 combined. That doesn't make for | | | | eventually loosen up, but it may be some time |
| a solid platform from which to launch 2010. So, what | | | | before that happens. |