John Paczkowski

Recent Posts by John Paczkowski

Remember When Webvan Went Public? Good Times…Good Times.

Sand Hill Road, your day of reckoning is here. The National Venture Capital Association posted its latest Venture Capital Index today and it’s not much to look at (see table below; click to enlarge). Why? Because a decade has passed since the dotcom bubble, and the Index’s 10-year figures no longer reflect that era’s distended returns.

Their presence is sorely missed. Consider this: Ten-year returns slid to 8.4 percent in the third quarter from 40.2 percent a year ago.

That’s a significant fall–no, it’s a horrific fall. And it’s only going to get worse, as the dotcompost that’s been nourishing the Venture Capital Index leaches out once and for all and the effects of the IPO drought that the industry has been suffering through these past few years begin to be truly felt.

“It has taken a full decade after the technology bubble burst for the venture industry to fully realize the impact of that era and its aftermath,” NVCA president Mark Heesen said in a surprisingly candid statement. “The significant returns created by the robust exit markets of the late 1990s have carried the industry for a long period of time.”

No longer. “The new reality is much more somber for many venture firms,” Heesen continued. “There are still healthy returns to be made in venture capital, but until the venture community sees a more vibrant exit market we do not expect marked improvement overall.”

[Image Credit: Audiophile & Synergy Industries]


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

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The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald