Bhoo wears the thinking cap!

As if that is possible!

Silicon Valley Start-Ups Awash in Dollars, Again!

Posted by bhoo on October 18, 2007

Nytimes article said it!

The easy assumption here is that the learning stays, and there will be cautious optimism  – as the disaster that was dotcom bust – is hardly 7 years back – and we can expect that there will be reasonable caution.  But world has proven time and again that history repeats itself and some lessons are never learnt.  In some senses, some lessons should not be learnt!

Entrepreneurship is about taking risks.  As much as we want to take a “right-brain” or objective, cautiously optimistic approach – where the learning of the past matters – entrepreneurial spirit prevails.  Not just with the promoters but also with the VCs and the other stakeholders.  Hence a lot of activities happen with just a whiff of optimism, sometimes bordering on sheer “hope”. 

I still see a lot of hockey stick projections of revenue growth – including in case of my own company Aspire Systems. 

But, I belong to the “believer’s club”.   Optimism prevails all the naysayers and the pessimists – not just in the IT industry – but in the economy as a whole and how the world will be a better place with all this innovation and entrepreneurship.

 There is a lot of activity in the internet-based entrepreneurship now.  Almost as much of a frenzy as it was in the last golden rush – and the subsequent crash.  Is there so much mad-rush with people jumping up and writing millions of dollars worth of checks? – I do think there is a certain amount of caution.

A larger percentage of VC activity in what I see in the market is with tough questions asked more than what was asked earlier.  Revenue models, proof of concept, existing customer base – the right fundamentals are being looked at.

So, do I believe that there will be an impending crash?  As much cold I feel in my spine – of pessimistic risk – I believe that no crash will happen this time.

All the very best for all the risk-takers – the entrepreneurs who make this world a better place every day!


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