Friday, February 18, 2005

Venture Capital On The Comeback

"The venture capital sector is beginning to bounce back after the tech bubble burst in March 2000, investment decision makers say. "

"Venture capital firms are being much more cautious about the new firms they invest in during this post-bubble period, said decision makers for four venture firms and Mark Heesen, president of the National Venture Capital Association. "

"At the national level, venture capital investments have remained fairly constant at between $4 billion and $6 billion for 11 consecutive quarters, said Heesen, who participated in a year-in-review panel discussion hosted by the Greater Cincinnati Venture Association. "

""We are in a good period for entrepreneurs right now, and we shouldn't mess it up," said Heeson. "

"It's still difficult for start-ups to get seed money, as investors want to wait until a firm acquires some market experience, said Bob Zieserl, managing partner of KB Partners in Northbrook, Ill.. "

""The experience in venture capital in recent years has been that those who go in early are not rewarded," said Zieserl, whose company has $100 million under management. "

"Jack Wyant, whose Cincinnati-based Blue Chip Venture Co. has $600 million under management, said a cautious new attitude is reflected by the numbers. "The size of the deal and the size of the investment have become smaller." "

"Health care and software and software services are two of the best growth opportunities for the future, the experts agreed. "

Read more here.
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