Is This Market Correction Good For VCs?
For those of you who care about these things, the NASDAQ is down almost 10% from its high in mid-January and every day it seems to go lower. I heard yesterday that the IPO calendar is starting to get shelved. The conventional wisdom would be that this can’t be good for VCs.
I beg to differ. The market was overheated in early January. Every company was starting to think about going public. It was like 1999 all over again. It was giving me nightmares.
This correction is good for the venture business. It takes the froth out of the market. Froth is never good. I have no idea how low we have to go before the NASDAQ will bottom and and we’ll have a bull market back again, but I suspect it will keep going lower until the supply that’s planned to hit the market starts getting cut back.