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With the recent crisis in the credit markets, there has begun to be a discussion about how that will affect the ability of entrepreneurs to find venture capital funding.

I see potentially a number of developments:

Venture capital firms, faced with a difficult exit environment, will allocate their limited resources to their existing portfolios to a greater extent, reducing their appetite for new deals.

The extent of the credit crunch will reduce enterprise demand for those portfolio company services that sell to enterprises, potentially increasing the time to cash flow breakeven or hurting revenue growth for VC investments.

VC firms will look to wind down their poorest performing companies, in order to free up capital to allocate to better performing companies.

The bar for making a new investment decision will be higher, requiring aspiring entrepreneurs to be further along with their venture and better prepared in their discussions with VCs.

Thus, I see the market environment for obtaining VC funding is getting more difficult, and requires entrepreneurs to be just that much better prepared during the fund-raising process.

Don Jones

VentureDeal

I'm pleased to announce the release of VentureDeal's free WordPress plugin for venture capital transactions in the United States.

The plugin is available to bloggers who are interested in automatically receiving the latest venture capital financing and M&A transactions for startup companies across all technology and life science industries.

The plugin utilizes VentureDeal's XML feeds to provide bloggers with free transactions published to their blog on a daily basis, updated within minutes or hours of their release.

A sample plugin can be viewed at: http://venturedeal.litmusbox.com.  Interested bloggers may inquire about obtaining the plugin via the "Contact Us" page.

The benefit to bloggers is that they can now receive the latest information on venture capital transactions, companies and venture capital firms at no cost. The data remains on their site as a growing database, generating additional page views, resulting in a stickier and more profitable site.

Cheers

Don Jones

VentureDeal

I'm pleased to announce that the Q2 08 VentureDeal Venture Capital Funding Quarterly reports are here:

http://www.venturedeal.com/Reports/Default.aspx

Available as free downloads via PDF or Web version, the reports track venture capital financing activity across all general technology and life science industries for technology companies based in the United States.

Feel free to download and pass along to a friend.

Cheers,

Don Jones

VentureDeal

Venture capital guru Guy Kawasaki has three videos up on tips for entrepreneurs considering raising venture capital:

http://blog.guykawasaki.com/2008/09/the-art-of-rais.html

Cheers,

Don Jones

VentureDeal