Posted by: jhamon | June 20, 2009

VCs Think Smaller In The New Normal

From Om Malik’s great post entitled Answer To Silicon Valley’s Liquidity Question: Think Smaller:

Earlier today we hosted one of our GigaOM Bunker Series sessions, monthly events that we’re holding in order to provide an intimate forum at which some of the most pressing issues facing startups can be discussed. Today’s topic was “The Future of IPO/Liquidity Events for Technology Companies.”

The takeaway message: Silicon Valley collectively needs to think smaller. Smaller valuations, smaller public offerings and smaller expectations.

A good example of a company with a solid technology base and equally large user base is Facebook, even though despite a growing buzz for an IPO, CEO Mark Zuckerberg said recently that the company has no plans to go public. Instead, the Palo Alto-based social networking company recently raised $200 million on a $10 billion valuation. One could say the same about Twitter, the fast growing micro-messaging startup that is still sans revenue but has managed to attract a fast-growing ecosystem of startups.

Welcome to the new normal.  [HINT: It's smaller.] 

 

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