As chair of the business department at the law firm of Barnes & Thornburg,
David Millard has spent decades helping high-growth companies secure
venture capital. In this economy, it's much tougher for even promising
small companies to attract interest from VCs. The key for entrepreneurs
is to get to know investors early on and stay in touch with them before
they need to raise capital, Millard says. The Indianapolis-based
attorney spoke recently to Smart Answers columnist Karen E. Klein. Edited excerpts of their conversation follow.
Karen E. Klein: A new private markets study done by Pepperdine University shows that venture capital firms have pulled back on new investments and are instead putting more money into companies that are already in their portfolios. Is that what you're seeing?
David Millard: I am. Most VC firms are keeping their powder dry and doing tons of insider rounds. By and large, these aren't down rounds; they're typically at about the same price as the prior funding rounds. They are much more reticent and hesitant to make investments in new companies.
To read the full, original article click on this link: Raising Venture Capital: Start Early - BusinessWeek
Author: Karen E. Klein
