VC Funds Shrink 82 Percent in Q2
Venture capital and talk surrounding internet start ups is getting stiffer. This news is not surprising considering the state of the economy- online entrepreneurs need to take this as an indication that, as it should be, a properly market-tested BETA is essential to garnering attention for your initial funding. The article below confirms my recent discussions with a New York-based early stage venture capital firm that asserted, “we’re looking for funding too; we should be getting more capital by the end of the year.”
Venture capital keeps getting squeezed as an asset class. The second quarter of 2009 saw the lowest level of capital going into VC funds since the first quarter of 2003, according to the National Venture Capital Association NCVA. During the second quarter, VC funds in the U.S. raised only $1.7 billion, an 82 percent drop from the second quarter of 2008, when $9.3 billion was raised. The amount raised is 63 percent less than than the $4.6 billion raised during the first quarter of 2009…
via The Squeeze Continues: Venture Fundraising Shrinks 82 Percent in Second Quarter.
