Will VC’s and Startups Be Immune to the Credit Crunch???

Given the financial turmoil that is hitting international markets (especially the US), it is not surprising that Techcrunch posted and article delving into the issue of venture capital in this tumultuous time. I agree with the majority of the article, except I think that there is another angle in play.

The general market turmoil caused by the credit crunch is certainly going to reduce the number of wealthy investors that are throwing money into VC funds. However, at the same time we are witnessing a sharp shift in the perception of risk associated with hedge funds and other leveraged investing strategies. As investors withdraw their money from those funds there is definitely the potential that some of that money will in turn flow into venture funds that are now perceived as slightly less risky than before, on a comparison basis.

The article is definitely worth a read. Check it out below and leave your comments here.

 

 

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1 Comment

Filed under credit crisis, economy, finance

One response to “Will VC’s and Startups Be Immune to the Credit Crunch???

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

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