Posted by The Founding Member on 2010-01-02
With a bright future in mind, TheFunded wishes you a Happy New Year and a successful 2010.
2009 was a tough year for many of the Member CEOs. The collapse of the IPO market in 2000 followed by the near collapse of the financial markets in 2008 have made it one of the hardest times in the last decade for startups to raise capital. In Q3 09, funds made $4.8 billion in investments, half the amount invested in Q4 07, but these funds only raised $1.5 billion themselves for making future investments, about 12% of Q4 07 decade highpoint (NVCA). In 2010, the last funds with large returns from the dotcom era will mature, and the newer vintage funds have losses ranging from 17% to 30% as a class (NVCA). With less money available and negative returns, the venture capital industry is imploding. Over the next eighteen months, the amount of money available to startups from all sources may face a fivefold decline from the previous decade high in 2007.
There are bright spots emerging. Corporations, local governments, and angel investors have stepped in to fill the need for growth capital. In the face of the many changes, TheFunded plans to adapt and take a leadership role in the transition, continuing to help entrepreneurs succeed.
In 2010, TheFunded plans to help entrepreneurs find resources to grow with less capital, to identify new and active funding sources, and to remedy systemic problems in the overall funding model. Read the Private section for more details...PRIVATE: Members Only (1818 Characters)