"There has been a real 'de-risking' of the market, which will certainly affect the I.P.O. market. That will impact the late-stage venture market, because the IPO market drives the late-stage venture market. And that will slowly impact the early-stage venture market. Valuations will come down. There will be less exuberance about venture capital investments. What will probably take place is a flight to quality. Venture capitalists will want to invest more in the companies that look like they're going to be successful and be a little less willing to take fliers on things that are hard to really handicap. If the financing environment changes, we'll try to take advantage of that and invest in companies at lower valuations than we would otherwise be paying." — Union Square Ventures partner Fred Wilson, on the broader market's effect on the VC world. [Portfolio.com]