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« In Flight Cell Phone Ban May Be Lifted | Main | 3GSM World Congress: Day Two »

Feb 16, 2005


Mike Masnick

Hi Jeff... I think, perhaps, I wasn't clear enough in what I was saying. My bad. What I meant, was that for most new startups, the idea of going out and trying to raise funds before proving they're fundable was (is) a waste of time. In the boom years, the assumption was: step 1: get an idea, scribble it down on the napkin. step 2: get funding. Now, companies actually have to work a bit before they go for funding. I think both of us agree that this is a good thing... The point was just that it's nice to see companies that appear to realize the importance of proving something before just going straight to the funding stage.


Hi Mike,
I hope you are doing well, I don't know if you recall but we met once on a panel we both spoke on a while back (think it was on wireless broadband). I would have liked to connect with you at Demo, perhaps another time.

I actually got the gist of what you were saying, and more significantly, I agree with you. What I was trying to convey is that there has been a tectonic shift in the venture industry in the last couple of years in the way that new deals are funded, but it's happened all the while that billions of $ in new capital has flowed into tech startups.

I think it's ultimately a risk/valuation equation, a more hefty piece of the risk is currently being carried by the startups with valuations not appreciating significantly at the funding stage.

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