Venture capital funding took a nosedive in 2009 but is set to come back, especially in the Internet sector, as entrepreneurs look for business opportunities in cloud computing, Web security and social networking.
"Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began," said Mark Heesen, president of the National Venture Capital Association (NVCA).��
Venture capitalists invested a total of $17.7 billion in the U.S. in 2009, the lowest level of dollar investment since 1997, according to the MoneyTree report by PricewaterhouseCoopers and the NVCA. The collapse of credit markets after the failure of banks like Lehman Brothers in 2008 forced business to stop making capital expenditures on IT, and blocked exit strategies such as IPOs and mergers and acquisitions for venture capitalists.
To read the full, original article click on this link: VC market opening up to social networking, cloud security - BusinessWeek
Author: Marc Ferranti
