I am invested in a couple of VC funds. i cannot disclose anything, but I can make the following observations.
1. Web 2.0 investments are bust.
2. User generated video investments are going bust as there were way too many!
3. I predict the underlying economics of broadband delivery of content will result in many of those investments going bust as well.
The problem is there is no liquidity path for anything!. That is companies that would have likely acquired these start up companies are losing their ability to buy as their inflated stocks drop. Nearly impossible to go public in this environment as well.
It won’t last forever, however, the first half of 2008 is going to be tough. Lets’ hope the market doesn’t realize we are going to get Hillary or Obama for President, and make the 2nd half even worse!
