Breaking News (not) VC’s have the same amount of money they had six months ago and still are in the business of investing. Entrepreneurs are being told to cut back and slim down. This leads to:

VC’s have the same amount of money they had six months ago and still are in the business of investing.

Entrepreneurs are being told to cut back and slim down.

This leads to:

Result of follow the heard VC’s lower long term return by hoarding cash Entrepreneurs build smaller companies with less revenues and market size Be lean can also mean become small (and irrelevant )

VC’s lower long term return by hoarding cash

Entrepreneurs build smaller companies with less revenues and market size

Be lean can also mean become small (and irrelevant )

So what happens? While the immediate IPO and M&A window has closed for the near future We are supposed to be building companies for the long term What if when the window re-opens, we’re left with a bunch of understaffed, small companies that barely made it through and have not created much value?

While the immediate IPO and M&A window has closed for the near future

We are supposed to be building companies for the long term

What if when the window re-opens, we’re left with a bunch of understaffed, small companies that barely made it through and have not created much value?

Maybe… Continue to invest and grow companies that are meant to blossom in 3 – 5 years. Ignore the stock market for now. Be a force for vision, clarity, confidence and long term growth in the face of a gristly market. Let the hysterics be left to TV news commentators do what is right, not what is in vogue.

Continue to invest and grow companies that are meant to blossom in 3 – 5 years. Ignore the stock market for now.

Be a force for vision, clarity, confidence and long term growth in the face of a gristly market.

Let the hysterics be left to TV news commentators do what is right, not what is in vogue.

Markets Change Focus should be less on funding and more on markets. Yacht sales business, probably bad. Discount yacht rentals probably better. Online mortgage broker probably bad. Analyze my spending probably better. Distract me from my worthless 401k with fun games and content, probably best!

Focus should be less on funding and more on markets.

Yacht sales business, probably bad.

Discount yacht rentals probably better.

Online mortgage broker probably bad.

Analyze my spending probably better.

Distract me from my worthless 401k with fun games and content, probably best!

The result Investors have raised money to invest in companies and help them grow. Companies pursue “needs” that consumers have online. Me-too layoffs and small break even companies are good for not going out of business, but probably not so good for building meaningful businesses of size ready for liquidity when the market changes.

Investors have raised money to invest in companies and help them grow.

Companies pursue “needs” that consumers have online.

Me-too layoffs and small break even companies are good for not going out of business, but probably not so good for building meaningful businesses of size ready for liquidity when the market changes.

Appendix Be bold. Try to build a business that is worth more and has more revenues than local dunkin’ donuts franchise If your investor is overly focused on cut, cut, cut, look around If your entrepreneur is focused on spend, spend, spend, make sure it’s the right market Coffee is for closers

Be bold.

Try to build a business that is worth more and has more revenues than local dunkin’ donuts franchise

If your investor is overly focused on cut, cut, cut, look around

If your entrepreneur is focused on spend, spend, spend, make sure it’s the right market

Coffee is for closers