For many venture capitalists, the stakes are too large, with many waiting for the dust to settle before venturing back into the market. Venture capitalists are spending most of their time assisting portfolio companies in cost management, market analysis and customer strategy. That sport has become significantly more serious in the current environment, Markey insists, and the telecommunications and broadband industries are getting the message. The days of no business model, no product and no revenue are gone. There's a big difference between building and investing and no one goes public anymore.
Investors are wiser and more seasoned about how to go about investing.
Cable and ILECs are still very strong, but a lot of money has been lost in the CLEC and ISP markets. They're 20 times cash flow and stuck, so venture capital is really tight and bank money is even tighter. Overbuilders, Unger adds, are faring only slightly better. That scenario will require some creative fund-raising and appealing business models to sustain any momentum gained by overbuilders, ISPs and others, experts say. It shows customers want a choice.