By Tim Mullaney
Venture capital investment fell 51 percent in the second quarter as firms coped with the recession and a drought in initial public offerings, bringing funding for startups to the lowest level in 15 years.
Venture capital firms invested $3.67 billion in 612 financing deals during the quarter, down from $7.56 billion a year earlier, according to PricewaterhouseCoopers and the National Venture Capital Association. Only 141 startups had a first round of venture funding, the smallest number since 1994.
The lack of IPOs is preventing venture capitalists from earning returns on their current investments. It also forces firms to divert more money to older companies, said John Taylor, a vice president at the NVCA. That’s keeping new companies from getting started as easily, he said.
Continue Reading Venture Investment Drops 51% as Startup Funding Hits 1994 Lows
