Without a doubt, the venture capital industry has experienced the worst quarter it has had in a decade. Many companies found it very difficult to raise money for start-ups. Even if risk was commonplace in the market, very little of it was seen in venture capital markets.
Many advocates though are hoping that the many IPOs now available would buck the trend and show that things would soon be better.
According to John Taylor, head of research at the National Venture Capital Association, "You hope for the best but plan for the worst. We hope that the logjam breaks in 2013 and a good number of ompanies are able to go public."
The industry is now worth over US$199 billion and it measures success on two factors, namely the number of companies able to raise funds and the total dollar amounts contributed.
For those companies able to raise funds, the past quarter was the worst period since the third quarter of 2003 according to data from both Thomson Reuters and the NVCA.
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