A Post from peHUB on effect of the downturn on VCs.

Down markets sharpen our focus on what is really important. Bottom line, if we are not building real, viable businesses that meet real needs in real markets, we’re delusional and should probably be doing something else. Having a viable business means that people will pay enough for your products or services with sufficient demand to sustain a cash flow positive business. Cash is always king, but in down markets, this is more evident and obvious to all.

The silver lining of any downturn is that you can spot the next wave if you look carefully enough. This downturn likely marks the end of the first wave of the cleantech/greentech/sustainable technology revolution. Disruptive technologies are adopted in two waves. The first wave is characterized by exuberance and overinvestment and is invariably followed by a crash. The second wave is always an order of magnitude larger than the first. It should be no different with clean, green and sustainable technology.