Vc warning: financing to early market worsens, IPO window or shut down

tencent inquiry on October 21, science and technology, as the U.S. stock market is becoming more and more unstable, a prominent venture capitalist Jim Breyer (Jim Breyer) has issued advice to the innovative company that want to refinancing please hurry up.

as a venture capital firm Accel Partners, a partner, breyer think that if the United States continued volatility in the securities market, the initial public offering (IPO) window will be closed 12 to 18 months. He said, “for private companies, it will be very challenging.”

Accel Partners, a $2005 in 2005 to invest in Facebook, and the latter is an initial public offering in 2012 was $1.3 billion. Overall, Accel Partners through investment in Facebook for $6 billion in investment income.

before you make the remarks breyer, including Box cloud storage service providers, the mobile security software developers have Good Technology and several private Technology companies have said, will be replaced with a new round of financing for the initial public offering, postpone their ipo plans to 2015. Current sources, the innovation enterprise to postpone ipo plans, mainly want to wait for better market conditions listed.

besides breyer, including venture capital firm Anderson Horowitz (famous venture capitalist Marc Andreessen Horowitz) Anderson (Marc Andreessen), as well as the Benchmark, a partner at Bill gore, (Bill Gurley) have been warned that to foreign innovation enterprise financing of the good times may not last very long. In the past few years, many silicon valley innovation company valuations are more than $1 billion, and the trend after entering the 2014 has been further strengthened. Market research firm CB Insights, is expected in the first half of this year, 14 American technology companies enter the billion dollar club appointed times, and the number is more than double that of 2013.

Anderson released in last month, Twitter messages, according to the speed of innovation enterprise current burn surprisingly fast; Al gore, silicon valley has took on too much risk.

grasp financing

breyer said in an interview, “I have encouraged we invest in some good companies, although they don’t need financing, the current thought but I let them to seize the opportunity. A company bank account is best able to maintain its survival has 18 months of cash.”

breyer said that media company Legendary Entertainment is one of his investment objects. The company because of these reasons, this month just to billions of dollars in value to raised $250 million. Legendary Entertainment, this round of financing led by softbank, fidelity and Morgan Stanley.

CB Insights of statistics show that the United States private capital activity has been reduced. In the third quarter of this year, with total investment of usd 9.8 billion of America’s venture capital, a 30% decline from the second quarter of 13.9 billion dollars.

breyer after graduating from harvard business school in the 1980 s to Accel Partners. This year, he has been to reduce the risk in the investment of the company’s daily work. Outside the Accel Partners, Breyer founded in 2006, Breyer Capital (Breyer Capital). The company currently has 16 investment, including the Legendary Entertainment and handicrafts electrical contractor Etsy investment in the United States.

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