High Impact Noise

There has been a debate in the blogosphere about whether Venture Capital companies are being irresponsible for only now telling their portfolio companies to scale back their spending.

Fred Wilson wrote about this previously saying

”...we have a responsibility as investors, board members, fiduciaries, and advisors to our companies to tell them what we’ve seen before, that acting now decisively will make it easier to survive tough times.”

Now Michael Arrington has added his two sense dispelling to rediculous myths that has come out during this debate.

• VC’s made this happen. (Just Silly)
• VC’s should always be stressing to their portfolio companies to conserve cash.

Arrington does a particularly good job refuting this second myth. Both are worthwhile reads.

In the end the economy is in the dumper. If you think stressing to your portfolio companies the necessity of conserving cash is irresponsible, then I pray my money is not being managed by you.