Management Perspective: Tim Barrows, Matrix Partners
Environment for Investing
Recently, Mark Mills host of WBIX’s Market Wrap program talked with Tim Barrows, General Partner of Matrix Partners on Emerging Business, a weekly segment produced by Growth Advisors and airing and streaming Wednesdays at 4:50 pm. The following is an excerpt of that discussion. An audio clip of the entire interview is available at the Emerging Business web page.
Mark: What is the environment like now for investing? Is confidence growing for firms to step up and make investments?
Tim: Things are improving overall as reflected in public company valuations. The rate of investment has picked up again. We’re concerned that the total investment rate is still too high in the aggregate. There’s been a lot of capital invested relative to the amount of capital the whole system can absorb.
Mark: When there’s an excess in the market, usually something happens to straighten that out. What might happen here?
Tim: Too many companies were funded several years ago and they are being kept alive and are morphing to go after current market opportunities. That represents a problem for the industry.
Mark: Do you think IPOs or M&A are the more likely outcome for companies in your portfolio?
Tim: At Matrix, we always shoot to back companies that have the potential to be stand-alone independent companies and become public companies over time. Most venture backed companies will be acquired over time, hopefully for attractive values.
Listen now: Real Audio | Windows Media
