venture capital

  • Why the Smart VCs Are Boarding their Jets

    Why the Smart VCs Are Boarding their Jets

    I started my career as a finance reporter covering wonky subjects like banks, bonds and agribusiness. I ended up in Silicon Valley covering tech, because it was the late 1990s, and I was doing what finance reporters are supposed to do: Follow the money. I’ve since realized if you want to cover startups well, it’s more complicated than that: You have to distill between the pioneer… Read More

  • VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008

    VC Dollars Dropped 33 Percent In The Fourth Quarter, Down 8 Percent For All 2008

    Venture capital firms tightened their purse strings in the fourth quarter of 2008, according to the latest MoneyTree Report released by the National Venture Capital Association and PricewaterhouseCoopers. The total dollar amount invested in venture financings was $5.4 billion, down 33 percent from the fourth quarter of 2007 (when it was $8.09 billion) and down 26 percent from the third quarter… Read More

  • The 2008 VC Liquidity Drought In Charts

    The 2008 VC Liquidity Drought In Charts

    The financial meltdown of 2008 all but shut down venture-backed exits, as we all know. The National Venture Capital Association declared a crisis back in the second quarter, which got worse in the third quarter. This week, the NCVA released its numbers for the fourth quarter and, as expected, they are pretty grim. There were zero venture backed IPOs in the quarter, and only 37 M&A… Read More

  • Oy Vey! Israeli VCs Exceptionally Gloomy on 2009

    Oy Vey! Israeli VCs Exceptionally Gloomy on 2009

    Deloitte recently released the results of its VC Indicator Survey (PDF), conducted among Israeli VCs this past month. The complied results are so pessimistic they paint a warm and fuzzy aura around Sequoia’s Doom & Gloom presentation. Participated by approximately 80 Israeli venture capitalists, the survey predicts 2009 will be an extremely painful year for the Israeli startup… Read More

  • The End Of Venture Capital As We Know It?

    The End Of Venture Capital As We Know It?

    Last week, something turned. We found out that not only are we in a recession, but it started a year ago. Tech layoffs went into overdrive (12,000 at AT&T, 600 at Adobe, 130 at Real Networks), bringing the total unemployed tech workforce to at least 90,000, by our count. Even Facebook decided to indefinitely postpone an earlier plan to allow employees to sell some stock… Read More

  • VC Financings For Internet Startups Down 16 Percent in Third Quarter

    VC Financings For Internet Startups Down 16 Percent in Third Quarter

    The MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association came out this morning. It shows that total VC financings in the third quarter were down 7 percent compared to the same period last year, to $7.1 billion. That is also down about the same amount from the second quarter. In the chart above, I’ve plotted the dollar value of VC investments for… Read More

  • Only 55 VC Funds Raised Money In The Third Quarter (Down 29 Percent).

    Only 55 VC Funds Raised Money In The Third Quarter (Down 29 Percent).

    The third quarter saw the number of U.S. venture funds raising new cash decline by 29 percent to 55 funds, according to data from the National Venture Capital Association and Thomson Reuters. That compares to 78 new funds a year ago and 76 new funds in the second quarter of 2008. And 45 of that 55 were follow-on funds rather than new funds. Each of those funds, though, raised a lot more money… Read More

  • No Exits.  Liquidity Dries Up Even More For VC-Backed Startups In Third Quarter

    No Exits. Liquidity Dries Up Even More For VC-Backed Startups In Third Quarter

    The liquidity drought for venture-backed startups, which was already declared to be a crisis in the second quarter when not a single VC-backed IPO went out, continued in the third quarter.
    For the first three quarters of the year combined, IPOs brought in only $470 million and M&A activity totaled $11.3 billion, a steep decline from prior years (see chart). Don’t expect the situation… Read More

  • VCs (And Startups) Won't Be Immune To The Credit Crunch

    VCs (And Startups) Won't Be Immune To The Credit Crunch

    So far the downward spiral of credit and financial markets seems to have left venture capital firms and startups relatively unharmed. Even though the IPO market closed completely in the second quarter (and opened again only slightly in the third), venture capital firms continue to raise money and invest in startups at a healthy pace. During the first half of the year, venture capital… Read More

  • VC Deals In Charts (Q2 2008)—Exits?  We Don't Need No Stinkin' Exits?

    VC Deals In Charts (Q2 2008)—Exits? We Don't Need No Stinkin' Exits?

    Second quarter data is out on venture deals from the National Venture Capital Association and PriceWaterhouseCoopers. Despite the IPO market drying up completely, the What-Me-Worry crowd on Sand Hill Road keep pumping money into venture deals at a steady pace. Venture capitalists invested $7.4 billion last quarter in 990 deals, compared to $7.5 billion in 997 deals during the first quarter… Read More

  • The "Crisis" In Venture Capital

    The "Crisis" In Venture Capital


    There were no venture-backed IPOs in the second quarter, and M&A deals are down. The last time there were no VC-backed IPOs in a quarter was in 1978. The liquidity drought for venture-backed startups is so bleak that the National Venture Capital Association is calling it a “crisis.” Last quarter there were only 5 IPOs that brought in a piddling $283 million. That compares… Read More