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The normally-sensible Straits Times came out with a story this money that breathlessly predicts the current "capital bubble burst" will cause the world's innovators to run short of funds by 2012. The also normally sensible Adeo Ressi of TheFunded.com was quoted as saying:
"I consider this the first dark sign of really bad collapse coming in 2010. The system needs new money to fund new ideas or the world will face a breakdown in innovation by 2012."
I predict the opposite will happen. If capital raising indeed remains a tough game, that will translate into good news for the funds able to raise it, and the community as a whole.
Why? The community will grow smaller, smarter and stop investing in every startup that walks through the door. It will start becoming rather more picky, and possibly begin providing the best returns ever on investment on the basis of a more finely-tuned investment strategy - a move that in itself is long overdue.