More than ever, VCs will have to show they invest for the long term

I hear panic is coming all around and for good reasons. Legendary financial institutions are collapsing and will take with them many other players in their doom. Many expect VCs to stop their investment in the light of those cataclysmic non-tech disaster. I assume there is going to be a clear impact and many startups are going to have a hard time finding willing VCs (i strongly recommend Michael Eisenberg's post on that matter).

But... there is a but.

Since i am in the VC industry i have been taught that in this business you invest for the long term. The light of a crisis is not supposed to kill that principle. It should just affect the way startups are screened, evaluated and funded. This crisis is probably here to stay but will not be here forever and if an entrepreneur is building a sound business there is no way it should not get funded. Read again the last sentence "Build a sounds business".

More than ever companies that are able to generate revenues are going to be the survivors and the winners in this darwinian ecosystem. VCs should chase them and fund. One day this crisis will be over, and some investors will be happy they did not change their direction (just adjusted it).

At LGiLab we are still committed to fund those companies. Our last investment (will be disclosed soon) matches this quest. And if you think you have it, then contact us. Now

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