When it comes to investing, venture capitalists are far more optimistic about next year’s prospects than they were about 2009, but they’re still just as downcast about their industry’s future, according to a survey by the National Venture Capital Association.
As it has done for the past four years, the NVCA asked its members more than a dozen questions about their expectations for the coming year. This year’s survey, conducted between Nov. 30 and Dec. 8, drew more than 325 responses to questions centered around investing, exits and their partnerships.
VCs surveyed largely expect firms to raise smaller funds in 2010 and for the industry to shrink in the next five years. Fifty-eight percent believe the industry will contract by 16%-30%, while 21% expect a 31%-50% shrinkage. That specific question wasn’t asked in last year’s survey, which took place three months after Lehman Brothers Holdings Inc.’s demise. But VCs then were equally sour about the industry’s forecast in related queries.
Original Article: VCs Down On Industry’s Future But Bullish On Investing - Venture Capital Dispatch - WSJ