Venture capitalists see opportunity in recession
Ever the glowing optimists, venture capitalists vowed that a backlog of healthy young companies — with $100 million-plus in annual revenue and growing — are poised to lift the economy and stock market next year when they get acquired or go public.
Ignore the gloomy forecasts, says Tim Draper, founder of the Draper Fisher Jurvetson venture firm in Silicon Valley. Many successful start-ups were born or grew quickly during downturns. That includes Microsoft, Hewlett-Packard, Google, eBay and Fairchild Semiconductor, which launched the technology revolution in the 1950s.
"Each recession provides opportunities for renewal and growth," Draper said. "The short-term view may be down, but the long-term view is fantastic."
Draper and others even predict that new products and companies in clean technology, medical devices, wireless technology and other sectors will usher in a new economic era.
Some economists forecast that the U.S. economy won’t bounce back for several quarters. But that didn’t deter several hundred leading venture capitalists and entrepreneurs from spreading economic cheer at last week’s AlwaysOn Venture Summit Silicon Valley.
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