Is Venture Capital in Crisis?
World Financial Review (July-August), 69-72.
15 Pages Posted: 12 Jun 2012 Last revised: 22 Nov 2014
Date Written: June 11, 2012
The recent financial crisis cannot totally be blamed for the marked drops in venture capital fundraising, reduced venture investment and the hindrance of successful exits around the world, but it may have exacerbated the existing problems. Poor returns over the past decade indicate most fund managers do not earn their fees, and investors have been increasingly wary of taking on added risk without getting the reward. Structural changes are inevitable to the venture capital marketplace to preserve an essential source of funding for nascent high-growth companies.
Keywords: Venture Capital, Financial Crisis
JEL Classification: G24
Suggested Citation: Suggested Citation