Comments on: Things I Learned at the National Venture Capital Association Meeting http://www.xconomy.com/boston/2009/05/04/things-i-learned-at-the-national-venture-capital-association-meeting/ Business + Technology in the Exponential Economy Sun, 22 Nov 2009 19:43:29 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: intrepid_one http://www.xconomy.com/boston/2009/05/04/things-i-learned-at-the-national-venture-capital-association-meeting/comment-page-1/#comment-57264 intrepid_one Mon, 11 May 2009 13:20:42 +0000 http://www.xconomy.com/?p=22652#comment-57264 Michael, you take the self-important VC voice - on "engine of innovation". VCs aren't an engine at all, gasoline or electricity yes, but engine no. Entrepreneurs, technologists and leaders are the engine of innovation. Michael, you take the self-important VC voice – on “engine of innovation”. VCs aren’t an engine at all, gasoline or electricity yes, but engine no. Entrepreneurs, technologists and leaders are the engine of innovation.

]]> By: Ti Kao, Robotikis founder http://www.xconomy.com/boston/2009/05/04/things-i-learned-at-the-national-venture-capital-association-meeting/comment-page-1/#comment-56348 Ti Kao, Robotikis founder Wed, 06 May 2009 14:09:20 +0000 http://www.xconomy.com/?p=22652#comment-56348 Thanks for let me rigister from your web. Thanks for let me rigister from your web.

]]> By: worldprivateid http://www.xconomy.com/boston/2009/05/04/things-i-learned-at-the-national-venture-capital-association-meeting/comment-page-1/#comment-56033 worldprivateid Mon, 04 May 2009 16:44:21 +0000 http://www.xconomy.com/?p=22652#comment-56033 Despite the fact that statistics of the past does not speak for the future. I admire your optimistically painted view about the VC industry. Two articles below from WSJ and SFGate said otherwise - WSJ, Venture Capital Hits a Cash-Call Crunch http://online.wsj.com/article/SB122869480476586689.html SFGate, VC investment in startups keeps falling Deborah Gage, SF Chronicle Staff Writer http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/18/BU22174C98.DTL Arguably, the consensus about 50% - 75% of VC firms in 2008 will be out of business within 2-3 years is remained to be seen. Likely than not, the VC industry will revert to a handful of brand name founders and a few scrappy but capable newcomers, and no one is going to see a "100 bagger" (returns 100 times the money invested) ever again. According to a recent report by AGC, explains - Venture funds raised an average of $25B per year in the last 5 years, but new capital raised in 2009 will be down 60% from 2008; VC industry is dying due to lack of liquidity and financial market stability and 2009 will be the worst year for VC liquidity since the early ‘90s; VCs have far less dry powder for new investments due to the recession and longer path to liquidity. On the bright side, buyouts and VCs with cash, empowered to invest, will encounter less competition than they've seen in years and capture far better opportunities. Despite the fact that statistics of the past does not speak for the future. I admire your optimistically painted view about the VC industry.

Two articles below from WSJ and SFGate said otherwise -

WSJ, Venture Capital Hits a Cash-Call Crunch
http://online.wsj.com/article/SB122869480476586689.html

SFGate, VC investment in startups keeps falling
Deborah Gage, SF Chronicle Staff Writer
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/18/BU22174C98.DTL

Arguably, the consensus about 50% – 75% of VC firms in 2008 will be out of business within 2-3 years is remained to be seen.

Likely than not, the VC industry will revert to a handful of brand name founders and a few scrappy but capable newcomers, and no one is going to see a “100 bagger” (returns 100 times the money invested) ever again.

According to a recent report by AGC, explains –

Venture funds raised an average of $25B per year in the last 5 years, but new capital raised in 2009 will be down 60% from 2008; VC industry is dying due to lack of liquidity and financial market stability and 2009 will be the worst year for VC liquidity since the early ‘90s; VCs have far less dry powder for new investments due to the recession and longer path to liquidity. On the bright side, buyouts and VCs with cash, empowered to invest, will encounter less competition than they’ve seen in years and capture far better opportunities.

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