More diligence and less capital coming for startups (and their investors) – Venture Hacks

In my first post, A brief history of your investors (and their investors), I wrote about the history of venture capital. I described how the economy and stock market drives investments into venture capital and startups. I also covered how the basic incentive structures are affected by these drivers.

I ended with a suggestion that cash is gaining power relative to other assets and a suggestion that this will shift the balance of valuation and terms in favor of the root sources of capital (limited partners and above). In this second part, I%u2019ll discuss why I think this is happening and what it means for venture investors and entrepreneurs.

Interesting post discussing the future of the startup investment market and how the current economic conditions may affect the next decade.