Time ripe for venture capital | CNET News.com
"HUNTINGTON BEACH, Calif.--With the war in Iraq, reconstruction after Hurricane Katrina and skyrocketing gas prices all signaling a weak economy, one might assume that today presents a poor landscape for venture capital.
But that's not the case, Mark Heesen, president of the National Venture Capital Association, told fellow VCs at the Demofall 2005 technology conference here.
In fact, Heesen said Wednesday morning, the time is ripe for a new cycle of investment, even if the size of funds has dropped significantly since the bubble burst on the Internet boom.
"There is an awful lot of money trying to get into this industry," he said. But where VCs are talking about how their "last funds might have been $400 million," today's funds might be only $250 million, he said.
Heesen predicted that the venture capital industry is about to go through what he called a "bifurcation." Effectively, he said, where there used to be a plethora of small, medium and large funds, the next generation of funds will likely be either very large--or smaller, $100 million funds focusing on specific technologies or geographic regions.
"Midsize funds are the ones that are getting stuck" without a lot of opportunity, he said."
Read more here.
But that's not the case, Mark Heesen, president of the National Venture Capital Association, told fellow VCs at the Demofall 2005 technology conference here.
In fact, Heesen said Wednesday morning, the time is ripe for a new cycle of investment, even if the size of funds has dropped significantly since the bubble burst on the Internet boom.
"There is an awful lot of money trying to get into this industry," he said. But where VCs are talking about how their "last funds might have been $400 million," today's funds might be only $250 million, he said.
Heesen predicted that the venture capital industry is about to go through what he called a "bifurcation." Effectively, he said, where there used to be a plethora of small, medium and large funds, the next generation of funds will likely be either very large--or smaller, $100 million funds focusing on specific technologies or geographic regions.
"Midsize funds are the ones that are getting stuck" without a lot of opportunity, he said."
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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