The VC industry is starting to shrink with some rapidity, according
to data
released today by National Venture Capital Association (NVCA) and
Thomson Reuters. The trend, which first started in 2008, has only
accelerated. During the second quarter of 2010, new money committed to
venture funds plunged 49 percent from the previous quarter and 57
percent from the same period a year ago. NVCA believes the soft economic
environment is to blame for much of the recent decline in new funds.
The latest quarter saw 38 funds raise $1.91 billion — the lowest level since the third quarter of 2003. There were 26 follow-on funds and 12 new funds raised in the second quarter of 2010, NVCA noted. These included new funds by Polaris Venture Partners and Venrock Associates.
To read the full, original article click on this link: Come See the Incredible, Shrinking VC Industry!
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