There was a view that the luxury sector would survive the downturn because folk with cash are immune. I hear that, for instance, Mulberry didn’t discount before Christmas and takings were down, but they recouped in January with shopper traffic (and still no discounts).
Today has been one of gloom for my economic outlook – so I kindof wonder how long Mulberry can defy gravity.
The FT reports that Venture Capital ain’t defying gravity. The ‘sit around and take the management fee’ isn’t even very easy now, as the money pots are being pulled back. The flight of capital, not the wall of money.
See the piece here online. The online edition doesn’t seem to reference the ‘most promising British start-ups’: PlasticLogic, playfish, green biologics, lovefilm.com, apatech, Tideway, picoChip, Seatwave, huddle, wayn.
And, this is bad news for all VC-backed business. Because, with the tide going out, the second rounds are being stalled. The start-ups are not getting anything. Logjam.
A few bright spots remain. Check out WebMission – a competition to take the best UK firms on a government funded tour of Silicon Valley. If you are quick, you might just make the closing date.