A shift in the way venture capitalists evaluated start-up potential


Senior Member
I can't understand exactly what they mean in this line: "a shift in the way venture capitalists evaluated start-up potential"
(I know what "venture capitalists" are)
Could you explain please?

Context: In the wake of Facebook's disappointing IPO, Paul Graham, the cofounder of the country's most famous and successful tech incubator, Y Combinator, sent an email to his portfolio companies predicting a shift in the way venture capitalists evaluated start-up potential

The source: Why the Social Media Revolution Is About to Get a Little Less Awesome
http://www.google.ru/url?sa=t&rct=j&q=why the social media revolution is about to get a little less awesome&source=web&cd=1&ved=0CCQQFjAA&url=http://www.theatlantic.com/business/archive/2012/09/why-the-social-media-revolution-is-about-to-get-a-little-less-awesome/262156/&ei=20NSUIWpGcbSrQfOmYGYBw&usg=AFQjCNF5bsxNOeXpYT8RnHS_s7KuLfT5IQ&cad=rjt
  • Cagey

    post mod (English Only / Latin)
    English - US
    Blackmirtl, how much of this do you understand?
    What sense do you make of it, and where do you run into trouble?

    Without some idea of what the problem is, we don't know whether we should focus on the vocabulary, the structure of the sentence, or in a particular word usage. We don't want to explain things you already know and miss the part that puzzles you.


    Senior Member
    Okay: first, the structure of sentence: Is "evaluated" a verb here?
    Shift = change, yes?

    The whole: a changing in the way how venture capitalists evaluated start-up potential. I don't quite understand what "start-up" is here.


    Senior Member
    A "start-up" is a new business, a business that is starting (up) operations; in this case Facebook was just going public (making stock available to the public). "To evaluate" is a verb--to assess, look at, examine. So, after the disappointing results of the initial public offering (IPO), venture capitalists are going to change their ways of assessing the potential of new companies.
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