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Thursday, December 18, 2008

Happy Holidays and Fundraising in 2009

Well, the Holiday Season is in full swing and a new year is around the corner. I hope the new year sees you all doing well (despite the economists' speculation).

As we look toward a new year I think it is time to talk about fundraising post-credit market meltdown.

Interestingly, we seem to have a fairly healthy market in the angel side because the volitility in the markets has caused private equity to be viewed as less risky (or at least not as big a jump up in risk). Nonetheless, it is not all rosy because there is a lot of competition for the dollars available, since many deals that would have had other methods of finance are now looking for private investment dollars.

For new businesses the take away is really this:

"Do your homework and be the best."

If you are the best in a competitive environment then the dollars are definitely available, but due diligence is up and investors are taking a critical eye to risk, so companies need to really work on being a clean investment. This means, no sloppy contracts, unprotected IP, vague expansion plans, etc. or the investors will just pass you by for easier deals because there are other good companies that have put in the work. But if you work to be the best, good things are available.

Happy Holidays

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