The National Association of Seed and Venture Funds (NASVF) and the Temple University Fox School of Business announced today that the percentage of venture and angel funds focused on investing in seed stage companies has increased 40% from 2009 based on the second annual survey to its members.
“The speed of turnaround in the situation is truly impressive. It shows the overall pick-up in the confidence that fund managers seem to have in seed stage companies” said Raj Chaganti, professor in Entrepreneurship and Strategy at the Fox School of Business.
Sixty-nine percent of the funds in the annual NASVF survey have $20 million or less under management and 85% focus on knowledge-based ventures such as technology, software, web 2.0, science based, communications and media. Other positive results from the survey were the following:
- 51% of the funds plan to invest more money in companies over last year
- 40% increase in the number of funds able to raise new money in less than a year
- 10% increase in the capital raising climate over last year
- 34% of the funds reported their average investment was between $500,000 - $1,000,000 vs. 18% last year
“This is great news for the companies that have the largest challenge in raising capital,” said Jim Jaffe, president/CEO of the National Association of Seed Venture Funds. “It is good indicator that the economy is taking a positive step forward. As many studies have shown, startup companies are the best and most economically efficient creator of new employment opportunities.”
To read the full, original article click on this link: SEED FUNDING INCREASES 40% ACCORDING TO NATIONAL ASSOCIATION OF SEED AND VENTURE FUNDS
