An Excellent Post On Ventures And Worldwide Pressures

I’ve posted quite a bit about offshoring lately (e.g., here, here, here), and I’ve been more in tune with international business (now that I work for a German-HQed firm). This post over at SiliconBeat and the related threads are rich with information on deal sourcing, tides in the venture world, what macroeconomic tides many investors want to tap into, venture operations, the (un)scalable aspects of being the first resources in a start-up, plus much more (such as why later-stage deals have risen as of recent). The one thing that is not really covered in this post, however, and something I have not quite reconciled in my mind is the craziness of start-ups in the Valley right now. My hypothesis (which is neither complete nor a very constructive hypothesis) for the craziness is that the economics for certain start-ups has significantly changed (lower costs of entry), and that the reach of such companies can expand quite far. The utility of forming a hypothesis about all of this, however, gets at understanding where the money will be, where the money will flow out, where you want to be, and where you don’t want to be.