Venture Capital Drought Worst Since 2003
Few sales and IPOs mean less payoff in the business of betting on startups
By JACKSON WEST
Updated 3:30 PM PST, Wed, Jul 1, 2009
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.
Copyright NBC Local Media
First Published: Jul 1, 2009 1:13 PM PST
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