Nobody likes to go through the process of a business failure, but the post below by a respected VC sets out some principles on how to gain the most out of the experience:Failing Well
At VentureDeal, we track a lot of metrics, but perhaps one that is the most "macro level" metric is the number of US venture capital firms that are still actively investing.
Prior to the financial crisis of 2008, there were approximately 715 or so active firms.
Our definition of "active" is whether or not the firm has invested within the past 12 months.
The number of firms that qualify currently as "active" is now 675, a drop of approximately 6% from pre-crisis level.
So, while a 6% drop is nothing to brag about and there is certainly a drop in fundraising and the number of active individual VC partners, the statistic is nevertheless encouraging and flies in the face of much of the gloom and doom that we see in the headlines.
The venture capital industry is evolving and adapting, but it is most certainly not going away.
VentureDeal is pleased to announce the availability of its Venture Capital M&A Quarterly Report for Q4, 2010.
The report contains aggregated data, notable individual transactions and historical graph information and is available free of charge.
Download report here