Nonetheless, the atmosphere at Sophia-Antipolis this year was more filled with distress than excitement. Investors today are choosing cautiously and consolidating their portfolios. They are also following startups for longer periods of time and investing in companies that are already in their second or third round of financing. The turnaround is generating rancor among venture capitalists in France, many of whom only began operating in the nineties. Other older and more experienced venture capitalists, therefore, tend to point their finger at new arrivals and blame the current crisis on their lack of professionalism.
Experienced teams are rare.
New startups that are short on funding blame these VCs for past carelessness and present conservatism. These same startups know, however, that the only thing that can really save them is a rise in the Nasdaq. Unfortunately, they aren't the only ones to realize it. The McGraw-Hill Companies Inc. All rights reserved.