The NY Times reports that, like their US counterparts, European VCs are also scaling back their investments in technology and and health care startups. Indeed, European VC firms invested in 42 percent fewer companies and invested 35 percent less than last year, resultingin the worst quarter since 2000.
Ram Srinivasan of Wellington Partners cites the unstable US markets and economic and political uncertainty as probable causes, while Mark Tluszcz of Mangrove Capital Partners said the slowdown was a short-term phenomenon. From the PR perspective, we had noticed a slow-down in the number of inbound queries a couple of months ago, but the pace has been increasing again, with more leads than we can manage. Still, the landscape is definitely shifting and evolving as the marketplace matures and the dust settles from the euphoria of the initial gold rush of startups rushing to build “Web 2.0” businesses ripe for acquisition.
As the summer draws to a close and the conference season kicks into gear again next week with both DEMO and TechCrunch50 debuting several new startups, it will be interesting to see if the decline in funding reverses itself sooner rather than later.
I’m happy to be slowly getting back to full speed after spending a couple of days in Marin General Hospital under the wonderful care of Dr. Galland. I had never been admitted to a hospital before and didn’t know what to expect. Plus, I was scared out of my wits. But everyone there was exceptionally kind and did a terrific job of making me relax and heal quickly. I’m now fully on the road to recovery so I’ll have more posts for you soon.
I’ll be going offline for medical reasons starting this week. In my absence, I’m leaving the reins to Dominic so hopefully you’ll see something here every now and then. If you feel like checking out my new art site in the meantime, please click here: Kathy’s Studio.
See you later,
I just read this piece by Chris Morrison at VentureBeat entitled How big an opportunity is the external memory? I think he’s on to something as there certainly is a need – (business) – in helping us remember all the bits of information that come our way these days… Where did I file that document? Where’s that email I got a month ago from the prospective new customer? Holy cow- it’s my anniversary tomorrow and I forgot to buy a gift! You get my drift. Good news – there are smart people like Sunil Vemuri, co-founder of reQall, who are addressing this subject today and providing solutions. Don’t forget to check out reQall… hint, hint