Silicon Valley Puts Out The ‘For Sale’ Sign

Silicon Valley is starting to take notice that their is a economic situation facing our nation and that the party is over as far as venture capitalists are concerned. The news may just pop the bubble of those who felt that Silicon Valley would be immune from a recession. It is ironic that back at the beginning of the year some felt that Google, a darling of Silicon Valley, could hit $1,000 a share or more. Yet as of this morning, Google is hovering at around $340 a share.

In this article it states that:

Updated: Sequoia Capital, arguably the smartest venture capital investor in business, is sounding the alarm and asking its portfolio companies to buckle down for what could be the worst economic downturn of their relatively short lives.

The fund organized a meeting yesterday where it invited entreprenuers/CEOs from its portfolio companies. The attendees were greeted by a cute image of a Grave Stone, with a message: R.I.P.: Good Times, my sources tell me.

Sequoia isn’t the only one advising its startups to tighten their fiscal belts and prepare for a gut-wrenching ride. Ron Conway, a well-known angel investor in the Valley who has invested in companies like Google, offered very sobering advice to his companies via an email earlier today.

It appears that Silicon Valley may also be in for some thumps and bruises as our economy struggles.

No duh! When people in Lee County Florida are buying homes for $90k that were valued at $275k, did anyone not think the situation was not getting worse?

Comments welcome.

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