Angel Investor Ron Conway Adresses His Portfolio Companies Over Financial Meltdown

Ron Conway, one of Silicon Valley's most prolific angel investor (and he was also the first investor in Google), wrote an email yesterday to the CEOs of his portfolio companies. In no uncertain terms he outlines a bleak immediate future, and gives advice to his startups.

It's the same advice, actually, that he gave in 2000 during the tech meltdown that was then happening in real time. Lower your burn rates to get at least 3 more months out of your current money, and raise money right now if you can.

The full text of Ron's email is below, along with similar emails he sent on April 17th 2000 and May 10th 2000.

One thing Ron made clear in a conversation with me today. He's not worried about the state of innovation in Silicon Valley. He's not pessimistic about the future of technology at all. What he is concerned with is his portion of the portfolio who don't currently have a large cash position to weather a storm, and he's sharing his experience from the last downturn to help them through this one.

¿¿¿ Forwarded message ¿¿¿-

From: Ron Conway

Date: Tue, Oct 7, 2008 at 12:12 PM

Subject: IMPORTANT PLEASE READ ASAP ¿..REGARDING CURRENT MARKET CONDITIONS¿Confidential

We have all been absorbed by the turmoil in the financial markets the past few weeks

Unlike the turmoil of 2000 when the "action" was centered right here in Silicon Valley this time is it centered on Wall Street¿..but it has rippled to the west coast quickly and we will not be "immune" to its drastic effects.

I was an active investor in 2000 when the "bubble burst" and remember it vividly and want to give you the SAME EXACT advice I gave to my portfolio company CEOs back then.