Published: 8/26/2009 2:03:10 PM, comments: 0
Here are a few links about recent discussions on the future of the venture capital industry:Bill Gurley on the VC industryMichael Fitzgerald
Published: 8/20/2009 9:52:23 AM, comments: 1
Venture capital firms are raising less money these days. Why is that?
The primary reason is that their limited partners - university endowments, pension funds and wealthy family offices - simply have less money to invest due to stock market and other markdowns on the value of their portfolios.
Since the money pie has gotten smaller, this means that the amount of the pie that is allocated to "alternative investments" such as venture capital is reduced, even if the percentage of the pie remains the same. This is the denominator effect.
Thus, it behooves the entrepreneur seeking funding to understand that there is a greater emphasis on capital efficiency for their entrepreneurial ideas.
Published: 8/5/2009 10:40:45 AM, comments: 0
Here is my take on the venture capital world in 2020:
Lots of smaller firms: $100 million fund size is typical
Few large firms: multibillion dollar fund sizes
Mobile applications will be the next major paradigm shift
Liquidity markets for entrepreneurs and VCs - other than major stock exchanges - will be popular
Average annual total venture capital invested will be $20 billion