MoneyTree report: Venture capital still rebounding
Updated
Contrary to what you may have heard elsewhere, venture capital investment is still growing, at least according to the latest MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association.
Yes, that’s pretty much the exact opposite of what Dow Jones VentureSource concluded last week — that a potential VC rebound had stalled. It looks like the disagreement has less to do with the Q3 numbers, where MoneyTree shows a total of $4.8 billion in venture… Continue Reading
Venture capital still a big deal for the US economy, study says
Venture capital remained crucial to national economic growth over the last two years, according to a new study conducted by IHS Global Insight and commissioned by the National Venture Capital Association.
I doubt many VentureBeat readers (despite criticism they might have of the venture industry) would argue that venture capital and startups aren’t important to the US economy. Still, the NVCA compiles this data every two years, presumably to remind lawmakers that they should listen to… Continue Reading
VCs raised fewest funds in Q2 since 1996
We’ve already published (unsurprising) data showing a big drop in the funding raised by venture capital firms during the last six months. Now the National Venture Capital Association and Thomson Reuters have released a new set of numbers focusing on the second quarter of the year (April through June), which apparently saw even less venture fundraising than the first.
Here are the basics: VCs raised 25 funds for a total of $1.7 billion. That’s the smallest… Continue Reading
StartUpHire says venture-backed startups really do create jobs
When entrepreneurs and venture capitalists ask for better treatment from the government, they love to talk about how startups create jobs. But can small companies really make a difference in the bigger landscape? Well, a study from the Kauffman Foundation earlier this year says they do. And now the National Venture Capital Association is teaming up with StartUpHire, a job site for venture-backed companies, to track how many jobs startups are creating.
As a group that… Continue Reading
Cleantech could top venture capital within five years
Cleantech could be the largest area for venture capital investment within five years if not sooner, Mark Heesen, president of the National Venture Capital Association, told VentureBeat in an interview. The NVCA has been bullish on cleantech for several years now, but the stars do seem to be aligning in new, momentous ways.
The trade group recently released a report (pdf) showing that cleantech investing had spiked 54 percent to $4.1 billion between 2007 and 2008,… Continue Reading
VCs challenge Obama plan to up carried interest tax
Earlier this week, president Obama announced his intention to raise taxes on carried interest for hedge funds and private equity firms as part of his bold new budget plan. Not surprisingly, members of the venture capital community have been quick to speak out against the change, arguing that it will discourage investors from taking risks on potentially important startups, and ultimately weaken the economy.
Obama’s proposal would hike the tax on carried interest (the percentage earned… Continue Reading
VC performance dips but stays strong through Q2
Venture capital returns have yet to feel the full impact of the capital markets crisis. Payoffs, as measured by the private equity performance index (PEPI), dipped over the first two fiscal quarters, but were still higher than those out of the NASDAQ and S&P 500, according to a new report released by the National Venture Capital Association and Thomson Reuters.
Second quarter saw an 8.2-point decrease in one-year returns, which fell from 13.3 percent to 5.1… Continue Reading
Venture payoffs falling — but hey, they’re still better than the stock market
With the economic downturn, it’s no surprise that venture capital returns, as measured by the private equity performance index (PEPI), have been falling. But a new report notes that VCs are still doing okay compared to stock indexes like the NASDAQ and the S&P 500.
During the first quarter of this year, PEPI’s one-year returns fell 7.6 percent compared to Q4 2007, according to the report from Thomson Reuters and the National Venture Capital Association. They’re… Continue Reading