It seems about time for private equity investors to take a closer look at venture-backed companies.
Let us count the reasons: Many venture funds raised during the dot-com bubble are nearing the end of their natural life and raising new funds is difficult for all but the top firms. Limited partners seem to be losing patience with some general partners.
Venture firms are still holding hundreds of companies that they financed during those heady bubble years. True, the pool has been shrinking, but VentureSource data show that as of July, 20% of companies that raised their first equity round in 1999 or 2000 were still private and independent. The total was 981 companies. Some of these companies have revenue of $100 million or more. (VentureSource is a data provider owned by Dow Jones & Co., the publisher of The Wall Street Journal.)
To read the full, original article click on this link: VC Sellers, PE Buyers Strain To Meet In The Middle - Venture Capital Dispatch - WSJ
Author: Russell Garland
