The current imbalance in the supply and demand for venture capital is creating opportunities for V.C. funds.
New limited partner commitments to venture capital funds have dwindled in recent years. This scarcity of capital has created its own Darwinian effect, with a new breed of start-ups flourishing as a result of innovation rather than capital-induced growth. As these companies mature, however, many of them are looking to venture capitalists for the money and expertise to realize their potential.
Last year, limited partner commitments to venture capital slowed to about $12 billion, the lowest level since 2003. In addition to concerns about venture capital returns, many limited partners are still constrained because of liquidity issues from the recent global financial crisis. As a result, many venture capital firms have shut down and others have raised smaller funds.
As a result, today is a great environment for venture capitalists to invest in businesses that have matured beyond the seed stage — companies that have typically grown to at least $1 million to $5 million in revenue and are expanding rapidly. And because of the shortage of available venture capital, their valuations are often compelling.
http://znacomstva.blogspot.com/2011/03/tips-for-rasing-capital.html
New limited partner commitments to venture capital funds have dwindled in recent years. This scarcity of capital has created its own Darwinian effect, with a new breed of start-ups flourishing as a result of innovation rather than capital-induced growth. As these companies mature, however, many of them are looking to venture capitalists for the money and expertise to realize their potential.
Last year, limited partner commitments to venture capital slowed to about $12 billion, the lowest level since 2003. In addition to concerns about venture capital returns, many limited partners are still constrained because of liquidity issues from the recent global financial crisis. As a result, many venture capital firms have shut down and others have raised smaller funds.
As a result, today is a great environment for venture capitalists to invest in businesses that have matured beyond the seed stage — companies that have typically grown to at least $1 million to $5 million in revenue and are expanding rapidly. And because of the shortage of available venture capital, their valuations are often compelling.
http://znacomstva.blogspot.com/2011/03/tips-for-rasing-capital.html
No comments:
Post a Comment