Clark Callander, co-founder of investment bank GCA Savvian
It’s perhaps a great time to start a company but what about the ones… well, beyond a great idea… you know, with people, technology and a bit of money left?
Well, the Hummer Winblads of the world are still busy pouring capital in early stage companies that may be looking to raise some “seed” capital or their first institutional round or an A-round. And valuations are not as terrible as it may look/sound.
“Valuations for A-rounds have historically been very stable. Even during the last tech bubble crash. So I don’t expect this to change this time around”, said Prashant Shah, the managing director at venture capital firm, Hummer Windblad Ventures
However, if you’re looking to raise a B-round… well… you’re pretty much out of luck at this point.
“Later rounds, which you may call mid-stage rounds, are going to be for a period of time TRICKY and more costly. That’s the zone where a startup is still developing a product, in beta, with one customer… That phase, I think is going to be very difficult, because the IPO market is not there and strategic M&A is slowing. I’d say wait until January when the volatility of the market comes down”, added Clark Callander, co-founder of investment bank GCA Savvian, which is opening an office in London in 2 weeks.
