Venture Capital to disappear
Filed in archive Venture Capital by tj on May 18, 2005
"Promod Haque, a general partner at Norwest Venture Partners, had the most forceful opinions. "Over the next five to ten years, I believe there are going to be half as many venture capital firms in this business, and there are going to be half as many companies being created," he said.
Haque contends that there is a supply-demand imbalance between the amount of money earmarked for funding startups and the appetite for startups' products. There are simply too many companies created and not enough paying customers, he says. This is not necessarily a new position, but it's been a while since I've heard a VC state it with such authority, especially since recent reports suggest the overhang of capital is shrinking."
My two cents - specialization will further evolve and with no major consolidation (although there are some benefits for getting bigger). But nice we talked about :)
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