Archive for the 'Economics' Category

Finance: Are technology VCs coming back? (Part 1)

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After quite a few years of dull runs since the 2000 IT bubble burst and together with it many hopes and portfolios of high flying Venture Capital firms in Silicon Valley, it seems they getting back again into full swing.

While many of the smaller VCs still struggling to get new funds in, last week’s successful placement of a new USD 650 Million fund by Andreessen Horowitz, basically tripling their capital for investment, speaks a different language.

With nearly zero return on treasuries, negative yields on TIPS and very low coupons on newly emitted corporate bonds, the huge increase of capital available through Quantitative Easing and money presses running non stop around the globe, more and more capital seems to seek investments that provide income beyond such meager returns. Private Equity and Venture Capital funds have demonstrated this in the past.

Investors putting money into Private Equity or Venture Capital funds that are considered an illiquid asset class, do certainly believe that holdings in companies even within the less mature ones VCs normally invest into will provide (more) tangible assets for their money than by investing into such companies via the stock markets which in the U.S. have endured an constant outflow of retail investors funds over the last year.

And the battle for investments between VC funds looks like heating up again (like it’s 1999 ???) when following the bidding war of various VC funds over a 6 month old small New York start-up called GroupMe that Khosla “won” during the last days by valuating it at a hefty USD 35 million.

There are nevertheless many changes since the 2000s – particularly for VCs investing into technology start-ups.

First with cloud services from Amazon and …

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Data-Visualization: The beats of the financial crisis

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Another fine example of an outstanding data visualization from the WSJ. We call it the beats of the financial crisis.

These diagrams perfectly demonstrate how many people are having a bad time now because of the greed, ruthlessness and high criminal energy levels of a few.

And this just seems to be the beginning or better to say the end of the beginning.

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Animation: Credit Crisis visualized (one more time)

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An outstanding visualization by Jonathan Jarvis – the 101 guide to the credit crisis animated.

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Banking Crisis: Bleed the World

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A great video making fun of those responsible for the current global financial crisis. “Band-Aid” look-a-like “Bleed the World” is urging people to digg deep for those really in need this Christmas – the bankers.

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Economy: The sad Car Maker joke

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With the American car makers on the edge of the abyss and hoping for a bail-out by the government we thought it might be appropriate to remind you of this sad car maker joke…

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Business: Japan Airline’s CEO tells lesson to other CEO

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The head of one of the top 10 airlines in the world shows no empathy for the overinflated pay and gigantic boni that other CEOs rake in every year.

Yesterday the CEO of Ford also announced that he will only demand a symbolic pay of one dollar within the rescue package requesting billions from the government. But otherwise in banks – with some exceptions – it still seems business as usual and millions of dollars in CEO salary alone remains the standard…

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