“Park East Capital” Tech analyst reports the latest findings from Microsoft.
After speaking to a Microsoft spokesperson “Park East Capital” reports that in the current down turn there has been a fall in new start-ups getting venture capital funding. However this has not deterred new start-ups from forming a company.
In fact start-ups are finding it easier to form a new venture as they have most of the say, not the VC firm.
Cliff Reeves, Head of Microsoft’s Emerging Business Teams spoke to “Park East Capital”, "With the advent of relatively cheap computing, relatively cheap bandwidth for communications, the cost of setting up a start-up has gone down."
“Park East Capital” senior economist adds, “Yes more start-ups are going alone, but we have found at “Park East Capital” that although its easy to start, its finding the capital to grow. This is where new companies need VC help.”
In a way it’s better for the VC company, as the more a start-up develops it’s easier for a VC firm to make the decision to invest. We are seeing lots of investments past the seed stage. At “Park East Capital” we are always actively looking for second stage tech companies to invest in, companies that what to grow beyond the garage.
“The serious investors have stayed with us and are not going anywhere. They understand the markets and when it’s down it has to go up. The serious players are aggressively looking now for the next big thing, as they know a killing could be made on any future investment,”
It’s the Tech arena where some of the best profits can be made; we have a positive outlook for 2010 for new emerging tech companies.
