Summarizing the Credit-Crunch-Venture-Catalyst Discussion

Some follow-ups on Keith Benjamin’s article on venture investing and the current credit crunch that stimulated the New York Times article I mentioned yesterday.

Keith’s original post highlighted the fact that the credit crunch should negatively impact the number of buyouts and acquisitions we see in the tech space. However, as Keith asserts, this does not necessarily mean overall negative tech sector impacts. In fact Keith believes the credit crunch will actually ‘stimulate’ growth in the VC investing space’ this is what the Times jumped all over.

VentureBeat has since asked Keith to author a follow-up post, clarifying his positon. Keith accepted the challenge. The main point here, is that tech sector stocks are swinging back into favor, highlighted by the VMware IPO success.

Chiming in to the discussion are Fred Wilson and Stu Phillips. Like, Benjamin, Stu another West Coast VC seems to think it’s a great time to be at a startup. Fred also seems to agree with Keith that our current environment looks promising for a resurgence of tech IPOS – as long as we are careful not to repeat mistakes made during the ‘time-period-that-must-not-be-named.’ However, not everyone agrees. DB in the comments of an OM Malik post says that the word in New York is ‘to be very scared.’ Mark Evans doesn’t get it either.

Seems there is a lot in flux right now’ what do you think?


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