(2008-02-05) Wilson Web Buyout Bear

Fred Wilson thinks that both the IPO and M And A markets for web Start Up-s is softening. We had quite a few companies in our portfolio weather the storm from 2000 to 2004. The ones who did were in it for more than the quick flip (Built To Flip). I think it's time to do that same gut check again.

Related, he notes *There's another reason why I don't think a purchase of Yahoo! makes much sense for Microsoft. I suspect that many of Yahoo!'s best services will languish under Microsoft's ownership and that users will leave. It's happening already under Yahoo!'s ownership to services like FlickR and Del.icio.us and My Blog Log. It will be worse under Microsoft's ownership. Web services don't get better under the ownership of big companies. They get worse. He recommends that Yahoo do a Break Up.

• Eric Marcoullier of My Blog Log recommends Figure out exactly how much money you would need never to improve your product again. If they offer you that much, take it and don't bitch when you never get to improve your product again. Otherwise, keep your head down and build.

• Then what's the Exit Plan for a Start Up? Who's making sustainable operating revenue? I Commented.