Tough B Rounds and Valuations, New Business Models in 2013

[Editor’s note: To tap the wisdom of our distinguished group of Xconomists, we asked a few of them to answer this question heading into 2013: “What does your gut tell you will happen this year even though you don’t have data to prove it?”]

I expect many companies looking for their Series B rounds to struggle to find them, and many companies looking for their last pre-IPO rounds to face substantial valuation pressure. I also expect substantial evolution or reinvention of business models for some of the recent high-flyer Internet companies.

Author: Habib Kairouz

Habib Kairouz is a managing partner of Rho Capital Partners and Rho Ventures as well as a member of the Investment Committees of Rho Canada and Rho Fund Investors. He brings more than 20 years of experience in venture capital, and focuses on new media, information technology and communications companies at various stages of development, from seed stage to growth equity.