Decius wrote:
] ] The net fund-raising total of $1.9 billion represented
] ] the smallest inflow of venture capital since $1.6 billion
] ] entered the industry in 1981.
]
] Now, adjust this for inflation...

this article is frightening.

We've returned more than 50% of the capital we've raised over the last 5 years. And while we still have a tremendous amount of money sitting around doing nothing, it's not going to go to a startup. It's going to go to existing investments who are on life support and need it until an exit appears. Which could be never at this rate.

Add to this the fact that Bush's idea of a stimulus package is to chop the taxes on dividends, so that people will invest in petroleum producers and steel plants instead of startups and technology companies, and we've basically eradicated all the entrepreneurial momentum created over the last 10 years.

I hate to sound over-reactionary, but that's really going to fuck up our future.

RE: VC Funding Slows to a Trickle