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Industry Experts Discuss Capital Markets & Economy

IRVINE, CA-Practitioners from the brokerage and technology communities say the well has dried up on venture capital for technology companies, but the current real estate cycle should be shorter than usual.

By Joel Cone | Updated on April 26, 2001

IRVINE, CA-The commercial real estate industry is not immune from the onslaught of dot-com failures that has recently hit the national economy, particularly in California. And with consolidation of the industry continuing, experts appearing on a panel at the University of California, Irvine Tuesday, say that the well of capital has apparently dried up for technology companies and how the economic downturn is effecting the industry?

Dennis DeAndre, CEO of LoopNet Inc., which is currently undergoing a merger with PropertyFirst Inc., says it doesn’t matter what industry a technology company serves, the venture capital has, indeed, dried up.

“You have to have a viable business model and be able to show that you can ‘monitize’ that activity,” DeAndre says. Frank Scavone, CEO of Precept, a web-based real estate finance company, says that just last week his company closed on two years of operating capital at the exact same price he raised money a year ago. In order to do that, however, a technology company needs to have partners and investors who are educated in the company’s business.

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