Fred Wilson, a respected VC and active Twitter(erer) posted a new article suggesting VC’s (or his business specifically) will be investing next year, despite economic difficulties.

It is easier to invest in thin times. The difficult business climate starts to separate the wheat from the chaff and the strong companies are revealed. With many investors on the sidelines (particularly corporate buyers/investors and ‘momentum’ investors like hedge funds and the like), there is less competition to invest in these ‘winners’ and the prevailing valuation environment means you get more equity for your dollar invested. That’s quite a recipe for success.

However, Fred also warns that investing in difficult times is not always fun…

But its not a lot of fun to be operating in the ‘thin times’ even as an investor. Most good firms have a portfolio full of companies that will be struggling to stay afloat and the VCs will spend more time working with their companies in this environment.

Read the full article here.—————–

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