This looks to be the fourth year in a row where venture capital investment will surpass fund-raising–and that has some people worried that start-ups are facing a hard winter.
“That is exactly the trend you would expect if you saw the venture capital industry shrinking, which is exactly what it is doing,” said Paul Maeder, a general partner at Highland Capital Partners and chairman of the National Venture Capital Association. “We’re in a shakeout. I don’t know whether it’s the beginning, the middle or the end.”
U.S. venture firms closed on $10.6 billion through the first nine months of this year, only slightly ahead of the $9.7 billion in the first nine months of 2010. Fewer funds held closings–90 compared with 115 a year ago. The numbers are the latest from Dow Jones LP Source, a unit of Dow Jones & Co., which publishes VentureWire.
To read the full, original article click on this link: Slow VC Fund-Raising Portends Hard Winter For Start-Ups - Venture Capital Dispatch - WSJ
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