Recently, at the Keiretsu Forum holiday party, Nat Goldhaber, a venture capitalist with Oakland-based Claremont Creek Ventures, shared some of his 2009 predictions. As you’ll see in this video, a lot of them center on the Obama Administration (clearly, Goldhaber’s no Democrat).
More specific to the industry, Goldhaber predicts the demise of the “Series B” round. As he tells interviewer Reena Jadhav, CEO of a free resume site called NuResume: “There will be A rounds and there will be C rounds, but there will be no B rounds.” He goes on to say that in 2009, startups with technologies ready to be “taken to the next stage” are in deep doo-doo if they aren’t sitting on a stockpile of cash.
“Give up your first born, give up 90% of the company, whatever you have to do to raise enough in the A round to carry it to the C round,” says Goldhaber to the HBS-educated entrepreneur, who very politely says of his soul-crushing counsel, “I think that’s brilliant advice.” Does anyone agree/disagree that the B round is a goner in the short-term?