August Capital's Howard Hartenbaum on why the venture industry is in the doldrums It was a tough year for the 2009 venture capital industry. VCs had just invested $14.6 billion into startups for the first three quarters of the year, down from more than $25 billion in the same period a year ago, and well off the run-rate of the $31 billion invested in 2008, according to VentureSource. Importantly, investors in venture firms are hurting for returns with the exit markets barely active. Acquisitions of VC-backed companies were valued at $9.1 billion in the first nine months of the year, down 55% from $20.5 billion in the same period in 2008. How will the venture industry evolve to adjust for the fact that investors are hesitant to fund the coffers of many VC ... [ Read more ]
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Vator TV | December 29, 2009