VC Magnet

I own a small business that enables people to create and publish their own cookbook. Getting ready for the holiday season, I have been working hard on getting everybody to eliminate operational bottlenecks and introduce some new products. Some of those efforts have been stalled by various fulfillment companies who are unable to get credit to purchase the equipment needed. These are successful companies, not startups, with solid growth and a long history of cashflow who normally would have no problems getting a loan for this sort of thing.

However, major banks have practically frozen lending to small businesses. In some cases, they are even advising these companies put their capital expenses on credit cards.

As a VC I might see this as a golden opportunity. Solid risks are unable to get credit because of halt in interbank lending. Even if you are a successful business owner that has cringed at the idea of taking VC money in the past, you might just be willing to give up some equity rather than deal with some insane interest rates and panicked loan officer.

Bad news for those of us in the startup world. This could flood the market with very attractive deals from solid risks and keep the VCs yawning whenever they see the caller-id from that early stage entrepreneur.

But, I'm not a VC. What do you think.