The VC Shuffle
May 18, 2009 Leave a comment
This article was originally published in May 2009. Today (March 2010) I came across an excellent article ‘The Emergence of VC/Angel Syndicates‘ that digs around the issue a little more. Full article here.
Parts of the VC sector have responded to the economic situation by downsizing, or more precisely, by moving into early stage activity. It has become tough for VC firms to find enough M&A and latter stage deal-flow activity that a number of organisations are looking to generate opportunities at the other end of the venturing spectrum. The following excellent article gives very recent activity status and charts the drop in VC activity, even over recent weeks. It’s all stateside but to an extent I am sure we can expect to see a mirroring of this activity in Europe too. Just like us, American’s are prone to propping up both decaying industries and unsustainable levels of business but what they do do as second nature in times of recession, is innovate or lead with entrepreneurial endeavor. President Obama has pledged $250 million a year in federal funds to seed a regional network of incubators organizations, an effort aimed at growing jobs and innovation.
See the article here.
As the VC press have little M&A or IPO news to report on, it seems that VC activity focused on early stage venturing is getting some prime coverage. Below is a great article on VCs that have invested into seed funds, accelerator programes and incubators.
Full article is here.