BURSTING BUBBLES: Two prognosticators suggest that dour months may be ahead: Billionaire banker George Soros gave a trenchant speech on June 2 in Italy, suggesting that European authorities have a mere three months to "correct their mistakes and reverse the current trends." Money quote: "In the 1980's Latin America suffered a lost decade; a similar fate now awaits Europe. That is the responsibility that Germany and the other creditor countries need to acknowledge." Closer to home, Y Combinator's Paul Graham shared a similarly bleak outlook with YC companies, keying off of Facebook's marketplace stumble. His worries: "(a) it may be harder to raise money at all, regardless of price and (b) that companies that previously raised money at high valuations will now face 'down rounds,' which can be damaging."
Edtech companies have typically had more modest rounds than the likes of say, Donut ($100 million for domain registry--yow). That makes the advice of Union Square Venture's Fred Wilson all the more precious: "hire slowly and wisely instead of quickly. You will be happy you did."
