Re:Paul Graham's Letter to YC Companies
by nl on Tuesday June 05, 2012 @01:51AM
(#4067524)
The bad performance of Facebook will cool the attitude of institutional investors towards online investment.
That will make it harder for the B-Grade VC companies to raise money, which will reduce the valuations anyone else has to pay to invest.
That has the potential to drive hundreds of millions of dollars into the angel space overnight, sending valuations through the roof or at least keeping them propped up for a while.
Not really. The crazy valuations were typically occurring when VC's got involved at the A round or later - not when early stage investors are working. A lot of early stage investing is done using convertible notes anyway.
That will make it harder for the B-Grade VC companies to raise money, which will reduce the valuations anyone else has to pay to invest.
That has the potential to drive hundreds of millions of dollars into the angel space overnight, sending valuations through the roof or at least keeping them propped up for a while.
Not really. The crazy valuations were typically occurring when VC's got involved at the A round or later - not when early stage investors are working. A lot of early stage investing is done using convertible notes anyway.