Without question, venture capital has helped insulate Web enterprises from national economic woes. Unfortunately, a new report from Thomson Reuters and the National Venture Capital Association
finds that 52 venture capital firms raised $1.72 billion during the third quarter, representing a 53% decrease in dollar commitments. “That’s the lowest level in eight years,” writes
GeekWire.com. “The quarter’s low fundraising numbers are reflective of ongoing challenges within the venture capital exit markets,” Mark Heesen, president of the NVCA,
stated.
“Economic instability continues to impact the ability of venture-backed companies to go public which, in turn, has prevented many venture firms from delivering solid
returns to their investors.” Meanwhile, for the first nine months of the year, U.S. venture capital fundraising totaled $12.2 billion -- a 26% increase by dollars.
“Until we begin to see a steady and sustainable flow of quality IPOs which return cash, limited partners will remain on the sidelines and the venture industry will continue
to contract,” Heesen added. “This situation is one that needs to be rectified in the near term if we want to have adequate dollars to invest in our country’s startup
companies in the long run.”
Read the whole story at Geek Wire »