So you want to be a VC, eh? (Part 3)

If you take but one thing away from these posts, let it be this:  venture capital is a tough business to get in, be in and stay in. During 2009, the VC industry continued the downsizing that became very visible in mid-2008.  While the global economic issues that surfaced in 2008 (e.g. banking meltdown, subprime market, global economic recession) accelerated the decline and definitely added stresses to the industry, this resizing is a function of the technology bubble bursting several years earlier – also known as the “dot com to dot gone” era.  With many firms that raised money during the bubble unable to raise new funds at this time, a further decline in the number of firms is likely.  While fund raising and investment entered a new range, IPO activity remained at a mere trickle and the acquisition exit marketplace declined both in quantity and quality. Continue reading “So you want to be a VC, eh? (Part 3)”

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