Oct. 14--The venture capital industry will continue to shrink, putting pressure on local start-ups hoping to raise money to grow their operations, investors said during a conference Thursday.
As more venture firms close amid the struggling economy, there is less money to invest. At the same time, existing firms are struggling to raise funds, which will stifle innovation among budding entrepreneurs.
Last year, there were 462 active venture firms that managed $177 billion. That's compared to 1,022 firms that managed $220 billion in 2000.
During a presentation at the Minnesota Venture & Finance Conference, Mark Heesen, president of the National Venture Capital Association, said the entrepreneurs getting money today have the strongest ideas and execute their plans.
To read the full, original article click on this link: Venture capital industry: Less ventured, less gained
