The End of a Long Bottom?

The End of a Long Bottom?

TechTransform, August 14, 2001: From here, it looks like the beginning of the end of the long tech sector correction. Our report: A Tech Investment Turnaround? supports the following conclusions:

Funding flow is returning to the high tech sector, but not on friendly terms. Most importantly, investors want to know ventures have truly found their bottom before their next investment.

The momentum is in highly leveraged deals such as bridge loans that give ventures a chance at a better future round - and are attractive to bargain-hunting investors.

Investment interest focuses primarily on good core technology and veteran management teams.

Funding is being achieved - though on extremely demanding terms for the ventures involved. Primarily, what's required is a scalable, proven business model with demonstrated traction (customers and revenue!)

UPDATES

February 4, 2002, Mercury News:

Venture capital investments rose in the final three months of 2001, the first quarterly increase since the Internet bubble burst nearly two years ago. More

March 3, 2002, VentureWire Alert:

The VWIX (Venture Wire Index) has finally started to retrace its long slide.

IS REID RIGHT?

"It's always hardest to raise the money when it's best to have the money.

"This is the best time in the world to invest."

Reid Dennis, Sept. 24th, 2001.

At age 75 and with nearly 50 years in venture capital, Reid Dennis is one of the masters of the relatively new art of financing technology companies.

Mr. Dennis was an early investor in such industry pioneers Seagate Technologies and Stratus Computers.

(Thanks to Stefan Jacobs for passing this on)