Profits go missing for VC funds, but OVP remains optimistic |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
Today On Techflash
- Can Microsoft overcome the smartphone app gap?
- Hey recruiters: Here's an R&D lab run by, and for, students
- Microsoft, Apple speak out on patents amid mobile-technology wars
- Apps that waste your time (in a good way): Execs' addictions
- Analyst sees 7-inch iPad in Apple future
- Social bookmarking site Faves.com to shut down
- Hey recruiters: Here's an R&D lab run by, and for, students
- Can Microsoft overcome the smartphone app gap?
- Keiretsu Forum NW invested $24 million in 36 startups in 2011
- Daptiv cuts staff; CEO Franklin departs
- Daptiv is latest tech company to cut jobs
- Daptiv's Pancottine resigns as company seeks new CEO
Mass High Tech
Profits go missing for VC funds, but OVP remains optimistic
When OVP Venture Partners managing director Gerry Langeler started his presentation yesterday at the firm's annual technology summit by referencing the "elephant in the room," everyone knew exactly what he was talking about. The venture capital business is in a serious state of flux.
Startup valuations are plummeting, limited partners are retreating and IPOs are virtually non-existent. But one stat from Langeler really caught my attention: only 15 percent of venture funds have generated a profit since 2001. "Pretty grim news," admitted Langeler.
But the long-time venture capitalist -- speaking to leading technology professionals such as the WTIA's Ken Myer, the UW's Ed Lazowska (more on his cutting remarks here), Silicon Valley Bank's Bruce Helberg as well as many limited partners in the Kirkland venture firm -- attempted to reassure the audience that the setbacks are only temporary.
"I think that it would be very easy in times like this to get down in the dumps about startups, about venture capital and about the entrepreneurial opportunities in this country and I think that would be a terrible mistake," he said.
And Langeler said people should look to history as a guide, something OVP has in spades since it was founded in 1983. Those early years at OVP were tough, with Langeler admitting that "hardly anybody made meaningful money" in the venture business.
"You were better off in T bills for a long period of time," said Langeler. Then, in the mid to late 90s, everyone started making money as the dot com boom took off.
Langeler cautioned people to not lose site of the cyclical nature of the business:
"If you think that this is the end of the world, I would come back and argue that no what we have here is a cyclical industry. I think we are going to see a tremendous rejuvenation in the venture industry starting, roughly next year ... because the companies that survive this period or get started in this period are going to be coming out of this environment with this incredible amount of pent up demand for innovation and innovative products."
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
TechFlash Team
Recent Sponsor Posts
Who's creating today's energy efficient buildings? Find out at the BetterBricks Awards, Feb. 16
BetterBricks Awards salute the individuals leading the way for high performance commercial buildings with an emphasis on energy efficiency. Join us as we recognize these standout green building professionals.
Award categories include: Advocate; Architect/Designer; Facility Manager/Operator; and Owner/Developer.
Keynote Speaker: Kevin Kampschroer, Director of U.S. GSA's Office of Federal High Performance Buildings. Kevin leads the U.S. General Services Administration's efforts in building sustainability and accelerating industry adoption of sustainable principles across all aspects of a building's life.
Register here by February 10!
If you are interested in buying a table, email Monica Alquist or call her at 206-876-5404.
The Triple Door Presents: The Atomic Bombshells "J'ADORE!: A Burlesque Valentine"
Seattle's reigning Burlesque super-troupe delivers a gorgeous and glittering VALENTINE featuring some of the Bombshells' most exhilarating acts to date. J'Adore! promises to celebrate l'amour with good humor, style, and a healthy dose of dazzle! Bring a friend, a lover, a family member, or a secret crush, and celebrate with the Valentine's Burlesque spectacular that will leave you shouting: "J'ADORE......The Atomic Bombshells!" The incomparable Jasper McCann emcees with high style and charm.
Please visit www.thetripledoor.net for a full schedule of future performances.
The Triple Door Presents: Bob Mould – See A Little Light: An Evening of Reading and Music
"Bob Mould. Those two words are synonymous with integrity. From Husker Du in the last century to right at this moment, Bob is the real deal, writing and playing music for music's sake. He's a great songwriter and performer. I have been a fan of Bob's for thirty years now with no end in sight." -Henry Rollins
Please visit www.thetripledoor.net for a full schedule of future performances.
Why Choose BDO for your SOC (previously SAS 70) Reports?
BDO’s experience in providing attestation services (SAS 70/SSAE 16, AT 101, AT 201, AT 601, etc.) to a broad range of industries, and our team of skilled professionals distinctly qualifies us to serve as your company’s Service Auditor. By leveraging the BDO global network of control specialists, we are poised to provide global services in more than 1,000 offices and across 119 countries. Many organizations find that investing in reports on controls may result in benefits, including:
• Increased client confidence
• Improved competitive advantage
• Minimization of frequent audits
• Streamlined business processes and controls
• Enhanced risk management
For detailed information contact Paul Martini at pmartini@bdo.com.
