The Future Of Web 2.0 and Its Venture Capital In The Financial Crisis.

We have heard from venture capital firms over the past few weeks talk about how they are unaffected by the downward financial markets, they only put more money in during these times.
We have seen $15 billion in around 2,000 deals so far this year, which is down, but strong nonetheless.
What is worrisome about the downturn in the credit crisis is the power of the venture capital firm that is arising.
Web 2.0 companies looking to raise another round of financing without any profits, can easily be taken advantage of, considering their inability to go to the bank and zero revenue to achieve a ‘real life’ valuation.
Investors in the VC firms are feeling weak only because of their own personal investments spiraling downward outside the private sector.
When they see they are losing money on their own, M&A deals are going down with the economy, and they can’t find startups that are making any money, it could turn ugly for the startups already in the game.
VC’s say this is their time to shine which should excite startups, but make them just as careful as ever when considering taking in money or going back for that next round if it can be avoided.

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Made tiny from: TechCrunch