Is The Sky About To Fall In Venture Land? - Forbes

Tech investor Harry Edelson warns of bear market for VC

Just about every venture capitalist I know is predicting that a correction is coming soon to the booming valuations for investments in emerging companies. But not everyone agrees if it will be a small fix or a catastrophic one.

Will this bull market be followed by a bear market as long-time tech investor Harry Edelson predicts? Or it will only be a slight blip before a continuous upward cycle begins anew in six to seven years, as forecast by a panel of optimistic VCs on a recent Silicon Dragon program in New York.

Leading VC Jim Robinson of RRE Ventures points out that valuations to invest in startups are higher than they’ve ever been, and there’s more money flowing in than during the dotcom period. He says the market is entering a cycle of ”natural cleansing” of 20% in “overdone” deal pricing before the next two years is up.

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