Venture Capital Drought Worst Since 2003
Few sales and IPOs mean less payoff in the business of betting on startups
dmarino / Flickr
Times are tough on Sand Hill Road. Well, not tough so much as awkward.
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Venture capital firms fund companies in exchange for a stake in the business, and realize their gains when a company is sold or goes public.
While a venture-backed company did go public, ending a nine-month dry spell, acquisitions are also down.
The fall seems to correlate with lower sale prices for acquired startups.
The median price for venture-backed businesses was $22 million, compared to $41 million for the same period last year.
Photo by Flickr user dmarino.
Jackson West figures that if Twitter sells at its asking price, the gold rush is back on.
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Posted Wednesday, Jul 1, 2009 - 3:21 PM PST
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