PWC reports VC investment down and the IPO market closed for the moment

According to PWC, the exit off the startup highway closed in 2008 with significant repercussions for startups looking for financing.

Difference between a great idea and a great new business venture idea

Now great entrepreneurs are very adept at finding small gaps in the market where there is an unmet, or underserved need.

However, not every unmet need means it is going to make a great business in its own right. Sometimes, it can be served very well by an existing business.

Here is a great example of a real need (that until today I didn't realise exists), that can be served by an existing player much easier than by a startup.

This is Google Mail's new Mail Goggle feature.

VC funding declining in the 3rd Quarter, 2008

I have been speaking to a number of VCs in the UK and Europe. The refrain is consistent. Funds know the window for taking their startups public has closed for a while, thus they will likely need to plan to do another round of investment into their existing portfolios. As a result, funding for new startups will be reduced.

The New York Times reported this trend taking shape in real numbers today.

While the Times reports that the next choice of funding - Angels - might shut down. In conversations I have had more recently, it seems many Angels had pulled out of the market earlier, and/or are open to investing regardless. I guess we will have to wait and see as to what the data really says.

Starting up a company in a bad economy

I see many INSEAD MBAs very stressed out about their job searches. I can understand. With the markets melting down, it is hard not to worry that the financial sky has completely fallen.

Nevertheless, there are significant opportunities in the market.

I thought this blog - while not particularly data driven - did provide some good support for entrepreneurs even in this time!