Oy Vey! Israeli VCs Exceptionally Gloomy on 2009
Deloitte recently released the results of its VC Indicator Survey (PDF), conducted among Israeli VCs this past month. The complied results are so pessimistic they paint a warm and fuzzy aura around Sequoia’s Doom & Gloom presentation.
Participated by approximately 80 Israeli venture capitalists, the survey predicts 2009 will be an extremely painful year for the Israeli startup industry in most every respect.
Here are some of the highlights:
- 92% of those surveyed predict at least 3000 people will be laid off.
- 92% also believe that companies who do not lay off employees will slash salaries.
- 74% predict that at least 10% of venture backed startups will be shutdown.
- 95% foresee harsh times in the fund raising department.
- 54% expect a slowdown in seed investments.
- 87% expect a decrease in company valuations.
- 26% are confident that commitments by limited partners will not be withdrawn, while 51% believe they might.