Good Times

I have started new companies in 1991, 1997,2002 and 2008. There is one thing all of those years have in common - they were all recessionary, or near-recessionary years.

An old Chinese saying says that 'crisis is an opportunity sailing on an ill wind' and some of the companies I am working with are suffering some of the effects of the slowdown, especially with the tightening up of the debt market.

However, the early funding end of the VC market seems to be flourishing; this is the time to make cheap, good deals with companies that are small, nimble and have every opportunity to benefit when the market turns positive again.

TV is going through a highly disruptive phase and the economy makes this a disruption within a disruption.

My experience is that, whilst investors run to the safety of cash and bonds, they actually balance this with far riskier, albeit small investments in highly speculative companies. Essentially, the asset allocation model is turned on its head.

Recession ? What recession ? This is an opportunity.

Comments