VC Funding: A Dip or a Drop?
Venture-capital investments are at their lowest point in 12 years. Is it a trend or a passing fad? John Tozzi ponders that very question, blogging in Business Week. Here's an excerpt:
Venture capital investments dropped to the lowest level since 1997 in the first quarter, with just $3 billion invested, according to the MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association, based on Thomson-Reuters data. That’s a down 61% in venture dollars invested from the first quarter of 2008, and a 47% decline from the amount invested in the fourth quarter of 2008, which itself was much lower than the rest of 2008. This reinforces what most entrepreneurs already understand: bootstrapping is more important than ever.