David Rose, NY Angels founder and head of investment incubator RoseTech Ventures, says his potential portfolio companies today must make money in a way they didn’t have to a year ago.
In early 2008, Rose would help start a business presuming venture capitalists and others would soon come kick in more. Today, “we can’t assume there will be anyone after us with a follow-on round,” he said at a NY:MIEG breakfast event at the Samsung Experience in the Time Warner Center at Columbus Circle. “We are really only looking at businesses that can get to profitability” on their own, and show growth, then, perhaps, get more investment in 2-3 years. The panel, titled, “The Economic Downturn’s Impact on Media & Entertainment,” explored how business has changed for media and technology businesses in recent months, and what prospects may be.
Rose was on the panel with Andrew Cleland, Executive Director of Alliances and Technology Strategy of Time Warner, and Robert Rechti, who is a senior VP and Industry Advisor for GE Commercial Finance’s Media, Communications and Entertainment business. Dale Peskin, co-founder of iFOCOS, host of February’s We Media conference in Miami, moderated. Cleland and Rechti both said they hold to the same principles as before the economy tanked, doing due diligence, though they may now look for more cash flow and flexible business plans, and be more selective in their deals.
(Note: My company, Teeming Media, has done business with both NY:MIEG and We Media.)