According a recent survey of US leading venture capital investors and emerging companies, the threat of war will not have a long-term effect on the venture market.
A study by Fundingpost profiles responses from top VC firms, and from CEOs of emerging companies approaching the venture market.
"VCs and entrepreneurs are looking for answers about how the threat of war is affecting the venture market" says Joe Rubin, director, Fundingpost.
How is the threat of war affecting deal-flow and investment?
VC considerations:
- Wars have typically impacted the short-term u.s. economy and not the long-term economy.
(Except that if humanity is in for ''''self destruction'''' there may not be a long term whatsoever)
- Venture investors are investing for the long term and do not change their long-term strategies based on current events.
- Venture investors are opportunistic and look towards current events, such as the threat of war, to seek deal-flow in industries that will attract additional spending such as security.
Entrepreneurs considerations:
- Entrepreneurs are still actively starting companies, even in the difficult market experienced over the past two years.
- Emerging companies today are more realistic in their expectations and understand that with consumer confidence and corporate spending down, they need to adjust their projections and outlook.
- Many of the entrepreneurs interviewed believe that historically, the strongest companies are built in difficult market conditions.
What the study may not consider, is that the consequences of an irrational war against an Islamic country, could extend the never ending spiral of destruction and hatred that plagues Palestine and Israel to the rest of the world. War now, could be the beginning of the end of the human race on the planet.
It''''s good to be able to convert threats into opportunities, but investment should be moderated by a ''''moral edge'''' and the pricelessness of human cost. Profiteering from death is immoral. Time for VCs to change their ways.