Technology incubator managers expect a sharp fall in the rate of investment by venture capital funds in start-ups graduating from incubators, according to a joint survey by the Israel Technological Incubators Forum and the Fahn Kanne Grant Thornton Israel accounting firm.
Over the past decade, links in the feeder chain for early stage technology companies are weakening, and the raising of funds for early stage companies has become almost impossible.
Over the last two decades, VC funds have been the first place start-ups graduating from incubators looked for seed funding. Entrepreneurs would nurture an idea and the company in the incubator until an initial product was ready for market, and then the VC funds would open up their pockets and invest. The survey, however, found that there has been a substantial change in this process.
To read the full, original article click on this link: Angels replace venture capital funds - Globes
Author: Batya Feldman
