With less VC funding and more startups in the market in the market these days, entrepreneurs looking to nail down money for their newest venture could be in for a tough time. But there are some tricks of the trade that venture capitalists say they are looking for and successfully funded companies have.
According to early-stage VC firm New Enterprise Associates, there is about 20% less funding in the overall venture capital market today compared to a decade ago. This year alone has seen further contraction, with a 7% drop in investments during the first half of 2012 compared to the same period last year, with 5% fewer deals funded, according to Dow Jones VentureSource. IT and Internet investments have not been hit as hard by shrinking funds compared to healthcare and energy sectors, Dow Jones points out. But Peter Sonsini, general partner at NEA, says one reason there is less money is because there are fewer investors compared to the economic heyday of the tech bubble. Still though, VCs like Sonsini say they're still eager to invest if it's the right deal.
To read the full, original article click on this link: 5 tips for locking in VC funding
