April 19, 2009
Last Friday there was a fair amount of noise made over the most recent “MoneyTree” Report showing a year over year decline of 47% in VC dollars invested in the Fourth Quarter, including this article in the New York Times.
Fred Wilson has a post digging into the numbers, suggesting most of the decline came from the Clean Tech sector, and the Silicon Valley region.
I haven’t spent the time to study the numbers, and don’t plan to. However, speaking from my own perspective, I actually am quite pleasantly surprised by the number of high quality entrepreneurs pitching high quality ideas since the beginning of 2009. In fact, I’d say I’ve seen more genuinely backable pitches over the last few months than during any earlier time. So while the total amount of VC invested has been declining and probably will continue to decline, I would wager that the number of high quality VC opportunities is as high as ever. Though, of course, we will have to wait 4-5 years to find out if that is true.