Interesting article in The New York Times yesterday about the concern among some in the tech start-up industry that the years of easy money and fast growth may be coming to an end. While there may be a few more 0's at stake in that particular industry, this is a storyline that plays out in virtually every emerging start-up market - at some point, the excitement ends and the rules that apply to everyone apply there as well. These rules come in many forms, including increased regulatory scrutiny, difficulty in raising additional funds and increased competition. Generally speaking, the companies that get out in front of the curve and plan for the future in the good times should be better positioned to continue thriving when the environment changes.
Venture fund-raising is often affected by stock market sentiment, said Mr. Horowitz, of Icon Ventures who has worked in venture capital for four decades. “When the public markets are doing well, we’re this sexy asset class,” he said. “When the public markets turn, we become toxic waste.”