By Bryan Stolle, MDV General Partner

This period in history is unique indeed. Yes, the environment for young companies is problematic at best. Business is slowing. Visibility into 2009 – much less 2010 - is uncertain. Capital markets are all but closed to many. But history shows that some of the strongest and most valuable companies emerged from tough economic times. Today’s sobering headlines are sending a clear message: executives must plan accordingly. In market downturns, sometimes demand isn’t altogether negatively impacted for startups (law of small numbers) – and in some cases, demand can even grow.

What we’ve been telling our CEOs is rather than hunker down, it’s time to step up.  They’re up for the challenge and will lead their companies with a success plan that includes spending wisely, creating differentiation from competitors, and preparing for the recovery to come. Like all of us, they are learning again the importance of being extremely mindful of budgets. They are also facing the new leadership decisions and challenges around staffing and customer management. Read the rest of this entry »