Entrepreneurs seeking venture funding in 2010 should be aware of the conditions currently facing venture capital firms, and adjust their strategies and pitches to align with these conditions.
Given the global financial crisis of the past 15 months, VC firms now seeking their own new funds from institutional investors are facing challenges. Institutional portfolio gains are down overall, credit is still tight and risk-adverse everywhere, and the VCs’ restrictions on their own new investments in the last three to four quarters has reduced their ROI, which is the basis of their attracting new capital to deploy in their VC Funds.
So, entrepreneurs, you need to understand the market in which you are pitching, and the pressures on that market. And you must do your homework:
Original Article: Strategies For Finding Venture Capital In 2010 - Venture Capital Dispatch - WSJ
