U.S. Venture Capital Funding Continues to Decline, Suggest 2010 Figures
2010 was another tough year for venture capital, according to Dow Jones. The industry venture capital fundraising shrank by 14% to $11.6 billion as compared to $13.5 billion in 2009. This is a huge fall for venture capital when placed against the VC funding of $40 billion that was raised in 2007.
According to Dow Jones, the majority of venture capital funds were accounted for by Multi-stage funds, where 38 funds collected $5.4 billion. Data suggests that LPs are becoming increasingly selective while investing.
This conflicts with the believed acceleration of the NY tech venture capital scene, which is on the verge of a bubble. However, New York accounts for only a small portion of the total U.S. venture capital funding and in not yet big enough to lift up the broader venture capital market.
According to Dow Jones, the majority of venture capital funds were accounted for by Multi-stage funds, where 38 funds collected $5.4 billion. Data suggests that LPs are becoming increasingly selective while investing.
This conflicts with the believed acceleration of the NY tech venture capital scene, which is on the verge of a bubble. However, New York accounts for only a small portion of the total U.S. venture capital funding and in not yet big enough to lift up the broader venture capital market.
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