Venture capitalists, whose money provides fuel to technology start-ups, last year invested the lowest amount in such companies since 1997, according to a report from PricewaterhouseCoopers and the National Venture Capital Association released on Friday.
Many in the industry say this sharp decline is healthy. Some have even been calling for a return to the investment levels of the early 1990s, before dot-com mania lured new investors and billions of dollars to venture capital and drove down returns, Claire Cain Miller writes in The New York Times.
“There was too much money in the system,” said Jeff Fagnan, a partner at the investment firm Atlas Venture. “It would be healthier if we can return to the pace and kind of deals that were done in the 1990s.”
To read the full, original article click on this link: Venture Capital Was Tight for Tech Start-Ups in ‘09 - DealBook Blog - NYTimes.com
