The venture industry is talking about the Series A funding crunch, but there is another crunch out there: the talent crunch. Several VCs have discussed the problem, which is particularly acute in Silicon Valley: a dearth of talent. This means that when start-up companies pitch to VCs, one element that VCs consider is whether the company has the requisite talent (engineering, software developers, etc.) on board; if not, the company may face greater scrutiny by VCs.
A post today by Tom Foremski on his blog Silicon Valley Watcher discusses this issue. HIs post is entitled "The Dirty Little Secret Of Silicon Valley's Startup Boom..." and is worth a read. He discusses the talent crunch in the context of entrepreneurs receiving angel funding, building the company quickly and selling to larger companies. The premise is that the larger companies are in many cases acquiring these small startups for the engineering talent alone. Here's the link: http://www.siliconvalleywatcher.com/mt/archives/2012/02/the_dirty_littl_1.php
A post today by Tom Foremski on his blog Silicon Valley Watcher discusses this issue. HIs post is entitled "The Dirty Little Secret Of Silicon Valley's Startup Boom..." and is worth a read. He discusses the talent crunch in the context of entrepreneurs receiving angel funding, building the company quickly and selling to larger companies. The premise is that the larger companies are in many cases acquiring these small startups for the engineering talent alone. Here's the link: http://www.siliconvalleywatcher.com/mt/archives/2012/02/the_dirty_littl_1.php
