Venture Investing Slows Down A Bit

from the August-vacations,-anyone? dept

Earlier this year VCs were whining that they had too much competition, as it looked like the big name VCs couldn't just waltz in and get the deals they wanted without competition from some of the peskier smaller VC firms. So, it should make them happier to know that the amount of venture investing dropped off in the third quarter by 15 to 25% or so (depending on whose numbers you use). Of course, this shouldn't really be surprising. The third quarter is notoriously difficult to raise money in -- as VCs seem to enjoy their August vacation time. If history is any indication, VC funding will continue at its normal rate, especially following the series of successful IPOs we've been seeing recently. Nothing gets VCs to invest like a series of successful IPOs -- even if the payoff of an investment today is likely to have nothing to do with the current IPO window.

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