Recent developments in the European private equity markets
01/10/2008. This paper from the Directorate-General Economic and Financial Affairs of the European Commission examines market developments in venture capital and buy-out investment in Europe and the US through the analysis of funds raised, investments and exits. It discusses the profitability differential of European venture capital investment in comparison with the US and suggests that it could originate in the different ways in which research is financed and the unequal supply of financing, notably from business angels, for young companies that are not sufficiently mature for venture capital financing.

Monthly European Technology Venture Capital Bulletin - July 2008
02/09/2008. The Go4Venture's Headline Transaction Index (HTI) for July 2008 confirms the indication observed at the back end of Q2: the market is in good health at the later stage end of the market, making up for the decline in the funding of early stage companies. The total monthly amount invested was €346.8m, a notable 38 per cent higher than €251.7m invested in the same period last year, and Go4Venture tracked 16 large transactions in July, an absolute record for the HTI.

Quarterly European Venture Capital Report
27/08/2008. Europe's venture capital industry recorded another dismal showing in the second quarter of 2008, with just 167 deals completed, the lowest quarterly total in at least nine years. The €858m invested was a 35 per cent drop from the €1.33bn invested in 286 deals over the same period last year, according to Dow Jones VentureSource, which released its Quarterly European Venture Capital Report today. However, early stage rounds accounted for 44 per cent of all deals done in Europe during the first half of the year, indicating that region may be nearing the bottom of its decline as more entrepreneurial companies are starting to enter the venture capital lifecycle.

MoneyTree Report
06/08/2008. Venture capitalists invested $7.4bn in 990 deals in the second quarter of 2008, according to the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association, based on data provided by Thomson Reuters. Quarterly investment activity was essentially flat compared to the first quarter of 2008 when $7.5bn was invested in 977 deals.

Monthly European Technology Venture Capital Bulletin - June 2008
06/08/2008. June 2008 figures show that Go4Venture's Headline Transaction Index (HTI) is only off by six per cent against its mid-point last year. While the market appears to be stable, we must keep in mind that the HTI focuses on published deals which tend to be larger in size, rather than summarising the market as a whole.

2008 Venture Capital Report
09/07/2008. The gradual but steady increase in venture investing activity that has characterised the venture capital market over the past several years continued in 2007. Of greater significance was the more pronounced improvement in the IPO and M&A markets for venture-backed companies over the past year, according to this venture capital report from law firm WilmerHale.

Monthly European Technology Venture Capital Bulletin - May 2008
09/07/2008. Based on Go4Venture's Headline Transaction Index (HTI) index, the VC market is holding up better than Go4Venture expected even if deceleration is creeping in, the firm says in the latest edition of its monthly VC bulletin.

German venture capital funds - an attractive investment opportunity
09/07/2008. Founders and young companies in Germany continue to have a strong need for capital. Venture capital firms are now again investing more often in German start-ups, with the number of founders who have been financed this year up from the previous year's level. Whether this is a sustained trend or merely a short-term straw fire will predominantly hinge upon the ability of venture capital firms to raise sufficient new capital from investors in the coming months. This continues to be a major challenge for German early-stage investors. Yet there has been a further improvement in the situation by comparison with the years before.

Ernst & Young – Global Venture Capital Insights and Trends Report 2008
Innovation: the growing importance of venture capital
09/07/2008. The process of globalisation has reduced the potency of many sources of competitive advantage. Companies around the world today enjoy broad access to global resources that help them to compete on factors such as price, process, quality and customer service, diminishing the advantage these confer. One element of competition, however, is harder to replicate and scale successfully: ‘innovation’. On an increasingly flat global playing field, successful innovators differentiate themselves and reap the rewards of the value created, according to this Ernst & Young report.

Monthly European Technology Venture Capital Bulletin - April 2008
28/05/2008. According to the HTI figures for April 2008, the European market is appearing to hold well, even if the momentum is clearly losing steam. The market continues to show some of the traits which are believed to characterise the slowdown: not so much a brutal stop to investments (as in 2001) but rather a distinct change in the types of investments which are getting made, according to this latest edition of Go4Venture's monthly VC bulletin.

The value of venture capital: how do VCs value young companies and is a higher valuation always better?
07/05/2008. Contrary to popular wisdom, venture capitalists consider it vital for entrepreneurs to be comfortable with the valuation of their company so that they are highly motivated to succeed, writes Stuart Paterson of Scottish Equity Partners.

SVB Analytics Research Series: Volume 3
02/04/2008. The timing, amount, price and terms of a future round are not always known when performing a valuation analysis. Historically these unknown factors have often made determining the impact of a future round an exercise in guesswork. In order to bring some science to at least one of those variables, the price, SVB has been conducting intense quantitative research into the step-ups in value between rounds for venture-backed companies, in this, the third in their research series.

Monthly European Technology Venture Capital Bulletin - February 2008
19/03/2008. Headline transaction index deals in February of this year totalled 32 compared to 22 in February 2007, according to Go4Venture's monthly VC bulletin. In terms of the total monthly amount invested, February is the strongest on record since the HTI was started in 2002.

Monthly European Technology Venture Capital Bulletin - January 2008
05/03/2008. The bulletin includes the latest figures from Go4Venture's proprietary Headline Transaction Index, an index reflecting tech financing deals as reported in the professional press. Overall, the level of activity continues to be strong and comparable to the high point of a year ago, depending on whether you include the unusually large Plastic Logic deal of €77m in January 2007.

Cleantech venture capital investment in 2007 jumps 43 per cent to $3bn
29/02/2008. Venture capitalists invested a record $3bn in 221 cleantech deals worldwide in 2007, a 43 per cent increase over the $2.1bn invested in 173 similar deals in 2006, according to new data released by Dow Jones VentureSource.

2007 Headline Transaction Index Round-UP
27/02/2008. The number of European technology venture investments and total amount invested in 2007 increased to its highest level since 2002, with notable increases particularly in internet services and the number of early stage deals, according to Go4Venture's Headline Transactions Index.

Venture Capital Performance Positive in All Horizons Ending Q3 2007 - Economic Troubles Could Impact Returns in 2008
20/02/2008. Venture capital performance showed positive returns across all investment horizons ending 30 September 2007, according to Thomson Financial and the US National Venture Capital Association.

US venture capital investment climbs to $29.9bn in 2007
13/02/2008. Last year saw record investments in biopharmaceutical, medical device and energy companies, according to the Quarterly Venture Capital Report released by Dow Jones VentureSource. Web-related investments were also up.

European early stage venture capital investment: an AltAssets interview with Yoav Andrew Leitersdorf, managing partner at YL Ventures
06/02/2008. Yoav Andrew Leitersdorf is investing in European and Israeli early stage businesses operating in the internet technology space. AltAssets asked him about his views on the industry and about what he thinks could make venture capital investment in Europe and Israel more successful.

Quarterly U.S. Liquidity Report: Q4 2007
09/01/2008. Venture capital liquidity booms, reaching $52.9bn in 2007, and M&A amounts double in Q4 2007, according to the Quarterly U.S. Liquidity Report from Dow Jones VentureSource. The annual median raised at IPO is the highest on record.

SVB Analytics Research Series: Volume 2
19/12/2007. This report from SVB Analytics is the second in a series of research papers designed to address what drives value in the unique world of private equity and venture capital. SVB's studies involve thousands of venture-backed technology and life science companies and data from multiple sources — some of which are survey-based and some from private sources, which are known to be extremely reliable.

Delaware versus Israel: where are the biggest and easiest exits?
12/12/2007. In this IVCJ article, Barry Levenfeld, partner at Israeli law firm Yigal Arnon & Co., takes issue with those who oppose incorporating in Israel. He discusses how both tax and exit circumstances have changed in recent years, making company incorporation in Israel less problematic and - in some ways - more advantageous than ever before.

Little Red Start-up Hood and the Big Bad Corporate Wolf
05/12/2007. Ziv Koren, director of business development in the Amdocs Advanced Technologies Unit, heads Amdocs Ascend!, a programme to identify start-ups with technologies that complement and enhance Amdocs' offerings. In this opinion piece, first publsihed in the IVCJ, he presents his well-informed take on the top ten myths surrounding start-up acquisitions by large corporations and the reality for the target companies' employees.

China Quarterly Venture Capital Report
21/11/2007. Venture capital firms invested a record amount in services-oriented companies in Mainland China during the third quarter of 2007 as overall venture investment produced 59 deals and reached $677m. This is a five per cent increase over the $645m invested in 76 deals during the same period last year, according to the China Quarterly Venture Capital Report released today by Ernst & Young and Dow Jones VentureOne, publisher of the VentureSource database.

Larger, later deals drive European venture capital investment up 22 per cent to €1.18bn in 3rd quarter
21/11/2007. European venture capital investment climbed to €1.18 bn in the third quarter of 2007, with half of this capital flowing exclusively to later-stage deals, according to the Quarterly European Venture Capital Report by Ernst & Young and Dow Jones VentureOne.

Should VC directors on public boards run for the exit?
07/11/2007. Whether VC directors should continue to serve on the board of a portfolio company post-IPO is a significant question for venture firms. In this IVCJ article, Tuvia Geffen of Naschitz, Brandes & Co. examines the ramifications of both sides of the issue.

Q3 2007 MAVA Venture Capital survey results
07/11/2007. The Mid-Atlantic Venture Association has released its Q3 2007 MAVA Venture Capital survey results, indicating that regional investors were not as active during the third quarter as previously forecasted, as the timeframe for closing a new deal increases, valuations and term sheet competition shows strengthening in the market.

After The Bubble: Analyzing the Landscape
31/10/2007. SVB Analytics was formed to respond to clients’ demand for assistance with analytical tasks resulting from new tax regulations and accounting standards. This article from SVB is the result of a study on the valuation drivers of hundreds of venture-backed technology and life science companies and looks at the process of writing valuation opinions for small emerging growth start-up companies.

Venture capital investment volume in Q2 2007 at highest level since 2001
17/10/2007. Venture capitalists invested $7.1bn in 977 deals in the second quarter of 2007 - the highest level of deals reported in a quarter since Q3 2001 - according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data by Thomson Financial. The quarterly strength in the number of deals was driven by companies in the seed and early stages of development, which increased by 31 per cent from the prior quarter.

Q2 2007 US venture capital financing statistics
10/10/2007. Ernst & Young and VentureOne's Quarterly Venture Capital Report shows that US venture investments totaled $14.5bn in the first six months of 2007, the highest since 2001.

Venture capital firms set their sights on new ideas - not new technologies
03/10/2007. It has never been easier to start an Internet company, says Knowledge Wharton. Create a web site, begin a viral marketing campaign to grow word-of-mouth and acquire an audience, garner some ad revenues, generate venture capital funding and sell out to a web giant such as Yahoo or Google. Startup costs can be minimised by using standard technology and by outsourcing corporate functions such as advertising sales. The business model, at least initially, is optional.

Venture Capital fundraising activity healthy for Q2 2007
19/09/2007. Sixty-eight venture capital firms raised $7.1bn dollars in the second quarter of 2007 according to Thomson Financial and the NVCA. This quarter's figures represented a decline in the number of funds but an increase in dollars raised.

Where the next big bets lie for venture capitalists
22/08/2007. The venture capital sector is finally bouncing back from its post-bubble blues, although it's still a long way from the euphoria of the late 1990s. Blockbuster deals - like YouTube's sale to Google for $1.65bn and Skype's sale last year to eBay for $2.6bn - are giving venture investors new confidence in their ability to cash out, said a group of venture capitalists who spoke on a panel at the 2007 Wharton Economic Summit. In addition, new sectors like clean tech, an umbrella term for environmentally friendly technologies, and trends like the aging of populations in the developed world are creating promising investment opportunities.

The passion and perils of seed investing
15/08/2007. Seed investors and start-up entrepreneurs need to have special qualities. In this IVCJ article, Jonathan Saacks, partner at Genesis Partners, describes those individuals best suited for the rough and tumble world of seed.

Venture capital investment in Europe remains steady at €1.07bn in Q1 2007
01/08/2007. Coming off the strong growth made in 2006, venture capital investment into European companies flattened in the first quarter, with €1.07bn invested in 207 financings, according to the quarterly European Venture Capital Report from VentureOne and Ernst & Young. Compared year-on-year, both capital and deal flow decreased 11 per cent from the first quarter of 2006.

European liquidity report: 2007 Q1
25/07/2007. Venture-backed European liquidity exits decline in first quarter 2007, while the median prices paid for mergers and acquisitions are at their highest point since 2000, according to the European liquidity report from VentureOne.

Global VC Insight 2007 Report
25/07/2007. Over the last 18 months, the venture capital industry around the globe has experienced a welcome acceleration in the mature investment hotbeds—the United States, Europe and Israel—and in the emerging venture capital hotbeds of China and India. Global venture capital investment last year reached US$35.2bn, the highest level since 2001, and is maintaining a robust pace in 2007. The acceleration has been bolstered by the increasing globalisation of both venture capital funds and venture-backed companies and a substantial investor focus on emerging sectors such as clean technologies.

Seeds are still being planted
18/07/2007. Seed investments are of high importance in sustaining Israel’s high-tech industry over the long term. In this IVCJ article, Zeev Holtzman, founder and chairman of Giza Venture Capital, describes the latest trends in seed investment within Israel.

VC investment surpasses $7bn in Q1 2007 and reaches highest quarterly level in five years
18/07/2007. In the first quarter of 2007, venture capitalists invested $7.1bn into 778 deals, the highest quarterly dollar amount since the fourth quarter of 2001, according to the MoneyTree Report by PricewaterhouseCoopers and the NVCA. Deal volume actually declined in the quarter compared with the fourth quarter of 2006, indicating venture capitalists' willingness to put more dollars into each round.

Venture capital fundraising activity continues at lower levels in Q1 2007
11/07/2007. Venture capital fundraising activity slowed in the first quarter of 2007 with fifty-six venture funds raising $4.9bn according to the National Venture Capital Association and Thomson Financial. While the first quarter saw a marked increase from the fourth quarter of 2006, venture fundraising during the first three months of 2007 was at the lowest level for an opening quarter since the first quarter of 2004.

IPO activity on US exchanges surged last year as billion dollar deals returned
04/07/2007. Fueled by the strongest fourth quarter for initial public offerings this decade, 2006 saw a 28 percent increase in total IPO proceeds compared to 2005, finds PricewaterhouseCoopers. Deal size increased dramatically with proceeds from the year's top 10 IPOs rising 58 percent in 2006, as eight of the 10 largest deals topped the billion dollar mark.

US venture impact study
13/06/2007. Venture-backed company growth surpasses counterparts across all industry sectors, shows an economic impact study by the NVCA. Venture-financed companies represent 17 per cent of the US economy, with a GDP benefiting local state economies across the country.

Scaling up innovation
06/06/2007. Developing country SMEs in partnership with government planners and foreign investors are working to create technology capacity and ensure their future in a knowledge-based world, says Thomas D Nastas in this article which originally appeared in a World Bank publication.

Go4Venture monthly VC bulletin - January 2007
02/05/2007. In many ways, says Go4Venture, this January was the posterchild of the recovery they have been charting for the past four years. Apart from the record amount of money tracked in their Headline Transaction Index in January 2007 (€233m), two key developments were illustrated by the transactions announced during the month: January saw the largest transaction ever in European venture capital, while the market saw the the entry/come-back to the VC market of hedge funds, family offices, investment banks, corporate venturers and wealthy business angels.

VC viewpoint on cleantech
11/04/2007. Sanjay Wagle, vice president at US venture firm VantagePoint Venture Partners, offers his perspective on the fast growing cleantech industry in an interview with IVCJ’s Tania Hershman.

Venture capital investment in Europe climbs to €4.12bn in 2006
04/04/2007. European venture capital report finds deal flow remains off pace of last year, finds Ernst & Young and VentureOne, but shows increased investment to early-stage companies along with communications & networking and energy segments.

Venture capital investing hits $25.5bn in 2006
14/03/2007. Highest level of Investment in five years, with relative strength in life sciences, expansion stage companies, finds PricewaterhouseCoopers and the US NVCA, based on data from Thomson Financial.

Venture-backed IPO volume plummeted in Q3 2006
06/03/2007. Only eight venture-backed companies raised $934.2m through IPOs in the third quarter of 2006 reflecting the slowest quarter since 2003, according to the Exit Poll report by Thomson Financial and the US National Venture Capital Association.

European Technology VC Bulletin - December 2006
28/02/2007. European venture capital finished 2006 with €103m worth of investments recorded in December in Go4Venture's Headline Transaction Index, bringing the total to €1.5bn for 2006 HTI Transactions. On a cumulative basis, 2006 is 20 per cent ahead compared to the year before.

Venture capital goes global
28/02/2007. Venture capital investors traditionally focus on opportunities in their local markets. Yet as the economy has become more global so has business investment. While globalisation is unpredictable, more and more VC firms see a bright future where potential rewards significantly outweigh the risks. This Global Venture Capital Survey measures the investment attitudes and intentions of venture capitalists around the world, examining views on target geographies and sectors over the next five years.

The IPO market 2006
21/02/2007. No fewer than 29 countries each hosted more than $1bn worth of IPOs last year, marking a globalisation trend set to continue through 2006, according to Accelerating Growth, the third annual Global IPO Trends Report released by Ernst & Young.

Healthcare VC
03/01/2007. Healthcare venture capital investors are on track for a record year, according to Healthcare Corporate Finance News.

M&A remains strong
03/01/2007. M&A activity remains at a six year high, according to the Transaction Services group of PricewaterhouseCoopers, buoyed by record cash levels at corporations and private equity firms, plentiful financing and historically low levels of troubled commercial debt.

VCs Bullish for 2007
03/01/2007. The NVCA's annual predictions for this year shows a strong level of interest in energy, new media and alternative exit strategies. But there will be fewer venture funds operating in 2007 as the technology bubble burst finally works its way through the system.

US venture on the up
20/12/2006. Venture capitalists in the US are continuing to expand to a more global investment focus, while recognising that most opportunities for success reside domestically, according to the 2006 Global Venture Capital Survey sponsored by Deloitte & Touche in cooperation with the NVCA in the US and various other venture associations around the world.

Global venture investment breaks through the $32bn figure
13/12/2006. With $25.39bn invested after the first three quarters of the year, venture capital activity in the US, Europe, China and Israel in 2006 is poised to hit a five-year high and register the highest annual investments since 2001, according to a global year end analysis by VentureOne and Ernst & Young. This year, investment is expected to top $32bn after the fourth quarter.

M&A is booming
13/12/2006. The ACG/Thomson DealMaker's survey records high confidence level by M&A Professionals. This year is on track for a record M&A year, while active buy-out firms are still fuelling a booming M&A market.

Building viable university spinouts: a VC’s view on three key ingredients for success
29/11/2006. There are a number of academic role models – such as Sir Tom Blundell (Astex), Professor Bellhouse (PowderJect), and Sir Greg Winter (Cambridge Antibody Technology) – who have recently made their fortunes from commercialising their research, says Quester in this white paper. These individuals and others have stimulated interest across a broad range of scientific disciplines. UK universities are also looking at increasingly novel commercial ways to benefit from transferring technology to the private sector. Some recent creative structures have been noticeable because of their scale and the long term commitments the universities have been prepared to sign up to.

Run for cover? M&A appetite and strategy in the global insurance industry
01/11/2006. As the insurance industry moves back into growth mode, rumours are emerging of an impending consolidation in the sector. A recurring theme in boardrooms is the balance between organic growth and growth by acquisition, and regarding the latter, where and how?

US venture capital investing off to a solid start in Q1 2006 with $5.6bn
18/10/2006. Quarterly biotechnology investing subsides as media and entertainment surges in the US, says PricewaterhouseCoopers and the NVCA. Post-money valuations of later stage companies swell.

The European M&A Monitor
13/09/2006. Strategy outweighs cheap debt as next year’s deal driver, while the UK will dominate European M&A activity in the coming year - but Germany is the focus of greatest optimism, finds the M&A Monitor conducted for IntraLinks.

Portfolio rebalancing continued in 2005
23/08/2006. The venture capital industry in the US, Europe and Israel continued its pattern of healthy consolidation over the course of 2005 with a declining number of companies hanging around in venture capitalists' portfolios over the past six years as investors made room for new companies, according to the annual Venture Insight study from Ernst & Young and Dow Jones VentureOne.

What’s hot in M&A: consumer markets
09/08/2006. As far as retail and consumer companies are concerned, says KPMG, in terms of value, consumer products and retail sectors recorded the largest increase during the first quarter of last year, up 391 percent and 175 per cent respectively.

Go4Venture Monthly VC Bulletin - June 2006
09/08/2006. June 2006 was again a month of sustained activity with approximately €135m being invested in the European VC sector. This is roughly in line with last year's figure, and is approximately in line with May 2006. On a cumulative basis, the Headline Transaction Index is 20 per cent ahead compared to June last year. So it's hardly a runaway market, simply healthy growth in a sector which is still recovering from the worst downturn in its (short) history.

Later-stage venture capital investment in Europe rises to highest point in three years, fueled by improved IPO market
26/07/2006. Ernst & Young/ Dow Jones VentureOne Quarterly European Venture Capital Report finds annual median deal size grows to €2m - the highest median since 2000.

MoneyTree Survey
19/07/2006. Venture capital investing held steady at $21.7bn in 2005, holding on to 2004's gain, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the US National Venture Capital Association. Later stage dollars and first-time deals hit four-year highs, while wireless and new internet-specific fundings ramped up.

Go4Venture Monthly VC Bulletin - April 2006
12/07/2006. Go4Venture's update commenting on the results from their European Technology VC Headline Transactions Index, based on the number and value of transactions reported in professional publications.

Transition - Global Venture Capital Insights Report 2006
05/07/2006. The last year marked a period of transition in the global venture capital industry, says Ernst & Young, as important developments in all the major markets signaled a passage into a new venture landscape. In the mature markets of North America, Europe, and Israel, this transition was expressed in the increased globalisation of venture capital funds and venture-backed companies, changes in the regulatory landscape that have altered the operational assumptions of both funds and portfolio companies, and challenging capital markets.

Venture capital investing holds steady
05/07/2006. Venture capitalist matched 2004 by investing $21.7bn in 2,939 deals in 2005, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the US National Venture Capital Association. Full-year 2004's $21.6bn marked the first increase in venture capital investing after three years of consecutive declines.

Prices paid for venture-backed US M&A deals reach $27.33bn in 2005, highest aggregate total since 2000
30/05/2006. US venture-backed companies claimed higher prices in mergers and acquisitions in 2005, with an aggregate $27.33bn paid in 356 transactions, the highest total amount paid in a single year since 2000 when 458 M&As were acquired for $98.10bn according to VentureOne's Quarterly Liquidity Report.

2005 was best year for M&A since 2000
30/05/2006. On the heels of strong M&A transaction levels in 2005, 85 per cent of area investment bankers, private equity professionals, and corporate executives surveyed in the ACG/Thomson DealMaker's Survey say the current environment for mergers and acquisitions and corporate growth is good or excellent.

Venture-backed IPO activity weak in Q4 and full year; acquisitions market carried 2005 exits for venture-backed companies
24/05/2006. Seventeen venture-backed companies raised $1.6 billion through initial public offerings and 78 venture-backed acquisitions were reported in the fourth quarter of 2005, according to the Exit Poll report by Venture Economics and the US National Venture Capital Association.

US venture-backed IPO market languishes while acquisitions market is bullish place for Q1 2006
18/04/2006. Only ten venture-backed companies raised $540.8m through initial public offerings in the first quarter of 2006, according to an exit poll report by the US National Venture Capital Association and Thomson Venture Economics. This study reports on the low IPO market and the stronger venture-backed M&A market.

Global M&A upturn of nearly 20 per cent in 2005
10/04/2006. The global merger and acquisition market is currently outstripping last year's improved activity levels by nearly 20 per cent - the value and volume of completed activity rising in equal measure according to an analysis by KPMG's corporate finance practice, based on data supplied by Dealogic.

Israeli VC Industry Outlook 2006
04/04/2006. Zeev Holtzman of the IVC Research Center projects that those major Israeli funds that have not been in the market to raise new capital for funds will start the process in 2006. Walden, Cedar and several others that have held off until now fall into this category. But not all funds that are currently in the market or that will soon join the search for capital will be able to achieve their targets, and many will have to settle for smaller than hoped for funds.

2006 predicted to be critical transition year in venture capital lifecycle
08/03/2006. The evolution of venture capital from a cottage industry to a mature asset class will manifest itself in several critical ways in 2006, says the US National Venture Capital Association. According to NVCA President Mark Heesen, venture capital will witness a fundamental shift in risk taking, investment complexity and participants.

Mid-Atlantic VCs report increase in forecasted financings, exits and investment diversification
08/03/2006. Data released by the Mid-Atlantic Venture Association illustrates that term sheet competition is declining, and that VCs are experiencing new competition. Although venture capitalists invested at a moderate pace in Q3 2005, they expect their funding activity to increase, as well as the number of potential 'exits' or liquidity events from their current portfolio companies.

Venture Capital Report: Q3 2005
20/02/2006. Increased US venture capital activity in the third quarter drove total capital invested up 9 per cent over last year. The VentureOne and Ernst & Young Quarterly Venture Capital Report finds the amount invested in IT companies at its highest level in more than a year.

US M&A activity continues to drive exit market
14/02/2006. Q3 of last year saw a doubling of venture-backed IPO activity, says an NVCA and Thomson exit poll, but this was not enough to recover from a dismal first half for 2005.

The Liquidity Report
14/02/2006. Prices for US venture-backed M&A took a leap upwards in Q3 of last year. The quarterly liquidity report from VentureOne also showed more IPOs in the third quarter of 2006 than all of the first half combined.

VC Bulletin December 2005/Headline Transaction Index Round-Up 2005
08/02/2006. Go4Venture's monthly VC Bulletin for December 2005 finds a sustained level of activity, propelling 2005 nearly 25 per cent ahead of last year; while their 2005 Headline Transaction Index Round-Up finds that the UK dominated the European VC market, with 40 per cent of the deals by value, well ahead of France (21 per cent) and Germany (11 per cent), and no other country representing more than 5 per cent of the market.

Mid-Atlantic VCs pick up investment activity as market appears to favour entrepreneurs
31/01/2006. Data released by the Mid-Atlantic Venture Association illustrates that US VCs became more active investors in Q2 2005. The increased investment activity in the region appears to come at a time when market conditions are favouring the entrepreneur, not necessarily the venture investor.

Venture backed M&A volume holds steady
25/01/2006. Venture-backed merger and acquisition volume in the second quarter held steady as disclosed valuations continued to rise, according to Thomson Venture Economics and the US National Venture Capital Association. Over the course of the quarter 75 companies were acquired, with 32 reporting a combined value of $4.4bn and an average disclosed value of $136.7m.

US venture capital investing rises 19 per cent to $5.8bn in Q2 2005
01/01/2006. US venture capitalists invested $5.8bn in 750 companies in the second quarter of 2005, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the US National Venture Capital Association.

The relationship between angels and venture capitalists in the venture industry
14/12/2005. Angels are a necessary part of the ecosystem, says one of the respondents in this CET2C survey. Many successful VCs get too busy or have gotten much larger over time, so there is still a need for smaller funds or angel investors to fund entrepreneurs at seed stages.

Do venture capital firms eliminate incumbent management teams?
30/11/2005. Entrepreneurs and their management teams approach venture capitalists to fund not only their ideas, but also their approach to executing their schemes. One doubt that nags at many, however, is that the venture capital firm will use their financial leverage to terminate the founding management team, replacing them with the venture capitalists' personal choices for successors.

Venture-backed firms continue to consolidate
30/11/2005. Vintage year 2000 companies make up the majority of exits from the 2004 pool, according to the annual insight study from Ernst & Young and VentureOne.

2005 Global venture capital investment report
21/11/2005. Following an active year of rebuilding in 2004, venture capital investing sustained the momentum in 2005 in the major markets of the US, Europe and Israel, according to the annual year-end analysis by Ernst & Young and VentureOne. Most notable was the fact that during the course of 2005, fund raising by venture capital firms increased significantly with venture capitalists stockpiling the most investment capital since 2001.

Trans-Atlantic mergers and acquisitions update
16/11/2005. Trans-Atlantic mergers and acquisitions, a phenomenon that made up a significant portion of activity at the height of the last M&A boom, looks set to continue its post-millennium downward trajectory, says Mergermarket.

The advantages of investors sitting on the boards of their portfolio companies
09/11/2005. Entrepreneurs often fear that investors will micromanage their company, usurping the responsibilities of the extant management team and imposing the venture capitalists' will. As with many longstanding and prevalent concerns, this one contains some validity, but much more mythology.

Business implications of venture capital contracts
19/10/2005. In this IVCJ article, Jonathan Stiebel discusses the business implications of venture capital contracts, notably the issues surrounding liquidation preference provisions. Stiebel conducts research relating to venture capital legal issues at Tel Aviv University.

Are venture capitalists seeking control of your company?
27/09/2005. At the initiation of any deal, the percentage of ownership the venture capital firm purchases in an investment transaction is a function of the real or perceived value of the company, says Jeffrey P Blanchard.

US venture-backed valuations climb to $15.6 million in second quarter
27/09/2005. Fueled by continuing investor interest in late-stage technology companies, valuations of U.S. venture-backed companies hit their highest point in four years in the second quarter. Overall, the median premoney valuation rose to $15.6 million in the quarter, an increase of $2.1 million over the same period a year ago, according to VentureOne.

Right from the start - A perspective on Entrepreneur in Residence (EIR) programs
21/09/2005. In this IVCJ article, Dr. Shlomo Kalish, Founder and Chairman of Jerusalem Global Ventures, discusses entrepreneur in residence programs - a growing phenomenon among Israeli venture capital funds.

Half of European venture capital directed at later stage rounds in second quarter of 2005
14/09/2005. In the second quarter of 2005, venture capital investment into European companies slowed, with €735.6 million invested in 203 financing rounds according to the European Venture Capital Report released by VentureOne and Ernst & Young.

The serial entrepreneur: A desired commodity
23/08/2005. Venture capital firms give strong preference to serial entrepreneurs when considering and making new investments. In this Israel Venture Capital & Private Equity Journal article, Zeev Holtzman, Chairman and CEO of Giza Venture Capital, looks at this policy and discusses its implications.

Global private equity: venture capital insights report 2004-2005.
13/07/2005. In Ernst & Young's report, Renewal and New Frontiers, they state they believe that the venture capital world has changed and is undergoing a significant period of transition characterised by increasing globalisation, a focus on capital efficiency and the return of the internet.

UK IPOs: Activity below 2004 levels but pipeline growing
04/07/2005. Research by KPMG’s Corporate Finance practice shows that the UK’s main Initial Public Offering market has yet to take off although the pipeline of IPO candidates is looking stronger than at the beginning of the year.

Teams before technology
22/06/2005. Ask most technology VCs which are the most important elements in a successful start-up and they will tell you - team and technology, says John Cavill in SEP's Venturer. However, depending on whom you talk to, the ranking may vary. If you have a great product but not the right team, the chances of success are slim.

A slow return to normalcy
01/06/2005. Robert R. Ackerman, Managing Director at Allegis Capital, looks at the state of the U.S. and European venture environment, and comes to the conclusion that after the heights and troughs of the past, we are now seeing a slow return to normalcy.

Quarterly European Venture Capital Report
25/05/2005. For the first time since 2000, annual investment in European venture-capital-backed companies held steady, with €3.5 billion invested in 2004, says Ernst & Young. That was nearly the same amount that was invested in 2003.

Venturing beyond the margins
27/04/2005. We are witnessing the early stages of globalisation in venture capital, accompanied by the predictable increased protectionism within regions and multi-nationals, providing an interesting challenge throughout the stormy global economy. With the forecast ahead no less turbulent, says Mark Montgomery of Initium Venture Capital, it's essential for stakeholders to carefully consider what is changing within venturing and equally important, what is not.

MoneyTree Survey: Q1 2005
27/04/2005. US venture capitalists invested US$4.6 billion in 674 companies in the first quarter of 2005, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association. Funding was below Q4 2004 of US$5.4 billion, but matched Q3 2004 of US$4.6 billion. Over the past two years, quarterly investing has floated between US$4.4 billion and US$5.9 billion.

A principle-agent approach to understanding the net asset value in VC
25/04/2005. European Business student Robert Blotevogel on the role of the net asset value in the venture capital industry and how GPs use it as a strategic tool to further their own interests.

The private sector's role in building the US intelligence community of the 21st century
19/04/2005. The US Intelligence Community (IC) is dramatically increasing its outreach to industry, offering an emerging and fast-growing opportunity for venture capital investors and their portfolio firms, says Equity International. Driven by factors such as the convergence of homeland security, military, and intelligence requirements and the challenge of analyzing a tidal wave of digital information, the IC has expanded the size, number, and variety of its contracts with the private sector.

Increasing the "odds" with a venture capital fund
19/04/2005. In analysing a venture capital fund, the process of performing detailed qualitative and quantitative due diligence is critical to limited partners. Understanding the investment strategy and dissecting the track record is necessary to assess the general partners' skills, including the ability to source a deal, finance/syndicate the investment, add operational value-add, position it for an exit, and generate a strong IRR and cash-on-cash return.

Mid-Atlantic VCs Indicate Improving Investment Climate
12/04/2005. Year-end data released by the Mid-Atlantic Venture Association illustrates an improving market for venture investment in the mid-Atlantic region. Coming off an active investment quarter in Q4 2004, VCs forecast an even stronger investment period in the first quarter of 2005.

US Venture-Backed M&A Valuations Nearly Doubled In 2004
12/04/2005. The venture-backed mergers and acquisitions market in the USA experienced a rebound in activity in 2004 after three years of steady decline, according to Thomson Venture Economics and the National Venture Capital Association.

Cautionary Tales for Startups
06/04/2005. While a bold idea, unflagging determination and patient financial backers are all crucial to successful start-ups, venture capitalists and their portfolio firms must also focus on less dramatic aspects of running a company, according to Knowledge Wharton.

IPOs of European venture-backed companies raise €712 million in 2004
06/04/2005. In 2004, 34 venture-backed European companies completed initial public offerings, raising a total of €712 million, according to the Q4’04 European Liquidity Report from VentureSource, published by the VentureOne unit of Dow Jones Newswires. The numbers represent a significant improvement over the nine IPOs that raised €129 million in 2003.

US 2004 venture-backed IPO activity exceeded prior three years combined
09/03/2005. Twenty-seven venture-backed companies raised $2.99 billion through Initial Public Offerings in the fourth quarter of 2004 marking the third consecutive quarter of more than twenty IPOs and the fourth consecutive quarter with at least $2.0 billion in total offerings, according to Thomson Venture Economics and the National Venture Capital Association.

Venture capital: The European way to success
23/02/2005. Attractive deals, high-growth portfolios and successful trade sales: the European VC industry clearly has the wind in its sails, say Wellington Partners. It is emerging from the recession even stronger, and is now specifically leveraging the strengths of its home market.

US venture capital activity focused on rebuilding in 2004
15/02/2005. Venture capital activity in 2004 is expected to complete the year on a positive note, based on investments recorded through the end of the third quarter by the Venture Capital Report compiled by Ernst & Young LLP and VentureOne.

Global Innovation – The Case for International Venture Capital Firms
07/01/2005. The global economy has fuelled the growth of entrepreneurship and created investment opportunities almost anywhere in the world, says Dr Martin Haemmig. Entrepreneurs continue to develop innovations that create new markets and businesses. These companies increasingly need to be global in scale, in order to successfully capture market share and build out to a sustainable business that pays solid returns to investors.

European Technology VC Headline Transaction Index: November 2004
20/12/2004. November 2004's results from the Headline Transaction Index confirm the previously stated trend: a second half of the year in line with or below 2003, says Go4Venture. But there's anecdotal evidence that industry participants are gearing up for a strong 2005.

Advent of Corporate Investors
14/12/2004. Venture capital in Asia is back in the spotlight as a growing number of global corporate investors commit to Asian funds, says the Asia Private Equity Review.

Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Third Quarter 2004)
14/12/2004. In their latest survey Fenwick and West have analysed the terms of venture financings for 113 technology companies headquartered in the San Francisco Bay Area that reported raising money in the third quarter of 2004.

Ernst & Young Global IPO Survey – 2004
07/12/2004. It looks like last year was a challenging year for initial public offerings around the world, says Ernst and Young. On the one hand, the Asia Pacific region powered ahead, with many markets seeing increased activity. China, for instance, continued its economic expansion, as was witnessed by the numerous IPOs of Chinese companies taking place around the world. On the other hand, the US and European markets experienced continued declines in activity, resulting in the quietest period for IPOs since the early 1990s.

Hot Topics in Private Equity
29/11/2004. In many ways the private equity industry has turned a corner. Deal flow and investments have picked up, stock markets have began to rebound and exits increased, says Ernst & Young. Yet even as the industry is about to go into a new year, it is still working on the issues that arose with the bursting of the bubble: valuations, disclosure, regulatory changes, and changed relationships between limited partners and fund managers.

Diminishing Overhang: The Pool of Private Venture Backed Companies in 2003
15/11/2004. A look at the changing number and industry distribution of private companies in VC portfolios provides interesting insights into how the venture capital industry is adapting itself to post-bubble market conditions. This “pool” of private venture-backed companies represents the venture inventory, the product on hand which must be moved to a trade sale or IPO for VC’s and their investors to realize a profit, say Ernst and Young. Trends in the make-up of the VC company pool, as with inventory movements in other industries, say much about the industry’s intentions and outlook.

US VCs Continue Optimism about Market Recovery
11/11/2004. Data released by the Mid-Atlantic Venture Association (MAVA) indicates that private equity investors in the region continue to have a positive attitude about market recovery, as evidenced in the results from nine consecutive quarterly surveys. In this quarter's results there was early evidence of possible stabilization in market growth via several indicators such as valuations, merger and acquisition activity, and deal flow activity.

European Technology VC Headline Transaction Index: October 2004
11/11/2004. This month's Headline Transactions Index, produced by Go4Venture, has confirmed the trend identified in their September launch commentary, i.e. that the European technology VC market is taking a breather after a strong start at the beginning of the year through to April 2004.

Comply now, IPO later: Factoring Sarbanes-Oxley Into Your Capital Markets Equation
08/11/2004. These days it’s nearly impossible to pick up a business publication without reading something about the US's Sarbanes-Oxley Act. But while much has been said about how SOA affects public companies, less discussion has focused on how it impacts privately held companies that want to become, or be acquired by, a public company. In short, SOA has far-reaching implications for private enterprises bound for public status, says Ernst and Young's Dan Montgomery and Gil Forer. To faciitate a smoother, higher value IPO or trade sale, a company’s management must understand what SOA means for them now, and what changes they will have to make to meet its requirements down the road.

2003 Global IPO Activity in Perspective
01/11/2004. Although IPO activity was down in 2003 when compared to 2002, a surge in floatations between September 2003 and March 2004 suggests that confidence is returning to the world's stock markets. It is still, however, early days, says Nicole Buisson of Ernst & Young.

Exploiting the Electromagnetic Spectrum
25/10/2004. This DTI-sponsored 'Foresight' project looks at twenty areas of EMS research with application potential for venture capitalists. The reviews look at new technological advances and assesses their likely impacts over the next 10–20 years. Markets include technologies for more efficient use of mobile communications; increased data communications capacity; sensing and imaging; and manipulating molecules and materials on very small scales.

Comparing European and US venture capital
06/10/2004. European venture capital returns have historically failed to match US returns. Industry commentators often explain the performance gap exclusively in terms of cultural or structural differences. But European underperformance primarily arises from underlying differences in practice, according to European venture fund of funds Mowbray Capital.

European venture deal terms
24/09/2004. Given the dramatic change in the European venture capital landscape in recent years, it would not be surprising if deal terms had shifted. SJ Berwin reveals the results of some analysis comparing UK venture terms in 2000 with those seen in more recent financing rounds.

The future of seed investment
16/09/2004. With the Israeli economy seemingly on the rebound and at least a dozen venture capital funds heading out to raise funds over the course of the next 12 months, prospects for early-stage seed funding are finally looking better, according to Jessica Steinberg of the Israel Venture Capital Journal.

Venture capital fund cash flows: The J-curve
07/09/2004. Any attempt to analyse a venture fund must take into account the way in which such a fund works and the resulting J-curve. A traditional 'Net Asset Value' approach is inappropriate and is likely to give the mistaken impression during the early years of a fund's life that it has been extremely unsuccesful, according to venture capital fund of funds Mowbray Capital.

Asian technology venture capital investing: The pan-continental approach
31/08/2004. China has attracted a great deal of attention from both venture capital firms and limited partners in recent months. But given the robust macro tech sector trends that have also emerged elsewhere in the region, the funding gaps that exist and the pricing differential between capital market cycles in the leading Asian markets, it makes sense not have a China-only strategy in Asia venture investing, according to Denis Tse of HSBC Private Equity Asia.

Added value - What do start-ups really want from their VCs today?
31/08/2004. In the years since the bubble burst the venture capital landscape has changed dramatically. Today, portfolio companies are demanding much broader skill sets and service offerings from venture capital firms and capital is no longer enough, according to venture capital industry consultant Dr. Martin Haemmig.

Lessons from Google's IPO
31/08/2004. On the surface, Google's IPO appears to have been at least a partial success. But it remains far too early to issue a verdict. Knowledge Wharton examines the details of the flotation and assesses the company's chances for the future.

What do entrepreneurs pay for venture capital affiliation?
05/08/2004. In the minds of entrepreneurs working to grow their fledgling technology companies, the intangibles brought to the table by venture capital investors are often worth a lot more than money itself, according to Knowledge Wharton.

Homeland security concerns in West and Asia create opportunities
07/07/2004. From a venture capital perspective, growing worldwide demand for homeland security solutions offers new and emerging investment opportunities that may be challenging to harvest, says Itzchak Gat, vice president of the Challenge Fund, in an article for the Israel Venture Capital Journal.

The return of dotcom IPOs
01/07/2004. The recent flotations of venture-backed companies such as Salesforce.com and Google, could be heralding the return of the dotcom IPO, according to Knowledge Wharton.

A new strategy for venture investors: Hedge
14/06/2004. In the venture capital industry it is widely accepted that nine out of every ten investments will not make money. If all goes well, the tenth will generate sufficient returns to offset the other losses. Given these odds, investors are always looking for ways to increase returns from their winner. Here, Knowledge Wharton, explains a new theory which could provide investors with an extra edge from investments that prove to be profitable and perhaps take the edge off some of the losing ones.

Private equity investing: An overview
04/06/2004. Basic mistakes in comparing FTSE and venture capital returns seriously undervalue the returns that can be achieved through venture captial investing. The true computations show, contrary to popular belief, that upper quartile venture capital funds have broadly outperformed quoted equities since 1990, according to Guy Fraser-Sampson of Mowbray Capital.

Trends in legal terms in venture financings in the San Francisco Bay area
27/05/2004. There was a significant improvement in venture valuations in the first quarter of 2004, with up rounds outpacing down rounds for the first time in two years, according to Fenwick & West.

Venture appetite for UK technology companies: Q1 04
14/05/2004. 2004 was forecast to herald the revival of technology venture capital funding in the UK. But, when compared with the first quarter of 2003, the number of venture capital financings of over £1m in the technology sector, fell from 28 to 21, its lowest level since the fourth quarter of 1998, according to Cobalt Corporate Finance.

Nurturing value: Growth prospects for UK privately owned businesses
23/04/2004. The prospects are bright for UK privately owned businesses with an eye for growth and wealth creation, according to a report by 3i. Superior flexibility and an entrepreneurial spirit will help smaller players benefit from the UK's economic recovery faster than their larger rivals.

Total US venture capital report
06/04/2004. Over $5.5bn of venture capital was invested in 502 private US based companies in the fourth quarter of 2003. This represents the first quarter-to-quarter increase in funding in two years and the largest increase since early 2000, according to Growthink Research.

European IT VC: Asset class of public service?
30/03/2004. If the European venture capital industry is to take advantage of the next wave of technological development, its governments must forget about supply-side initiatives and deliver demand-side programmes instead, according to Ken Olisa of Interregnum.

The case for Arizona: Early-stage technology
22/03/2004. Arizona is experiencing the beginnings of critical mass in life sciences and other early-stage technologies suggesting it may have the potential to emerge as a new partner on the global stage. But the market is currently suffering from a severe lack of venture capital activity and is among the most underserved markets in the world, according to Intium Capital.

Surveying the groundswell of renewed interest in venture capital
18/02/2004. The European venture market's attitude towards risk has to change if it is to catch up with its US counterpart, according to Ray Maxwell of Invesco. An underlying fear of failure among European entrepreneurs also has to be addressed.

Silicon Valley's resurgence: Is it for real?
10/02/2004. Silicon Valley, the entrepreneurial hub of the US, is stirring into action once again. But although venture capital firms are demonstrating a renewed confidence in the sector it remains to be seen whether this time the resurgence is for real, according to Knowledge Wharton.

Trends in legal terms in venture financings in the San Francisco Bay area
25/11/2003. The overall terms of venture financings in the third quarter of 2003 improved slightly from the previous quarter, according to Fenwick & West. The direction of price changes was similar to the second quarter of the year, but the use of some of the tougher terms such as multiple preference, ratchet anti-dilution and pay-to-play decreased.

Management equity in venture backed companies
23/09/2003. The British Venture Capital Association and the Inland Revenue have reached an agreement regarding the impact of the Finance Act 2003 on private equity buy-out deal structures and carried interest. But problems still persist for venture capital investments where no third-party debt is involved, according to SJ Berwin.

High-potential entrepreneurship
02/09/2003. The quality and efficiency of a nation's venture capital industry is crucial to its level of high-potential entrepreneurship, according to Erkko Autio of the Helsinki University of Technology.

The top venture capital firms for entrepreneurs
20/08/2003. US venture capital investment fell to its lowest level in five years in 2002, according to PricewaterhouseCoopers' Top Venture Capital Firms for Entrepreneurs survey. The number of early-stage companies attracting venture investment fell to its lowest level since 1994.

Financing entrepreneurs and their businesses
07/08/2003. The three fundamental elements of an entrepreneurial society are an abundance of would-be entrepreneurs, plenty of market opportunities for new ventures and sufficient resources, including financing, for entrepreneurs to launch their new ventures, says William Bygrave of the Kauffman Foundation.

University spin-offs: seeding the field
23/07/2003. Major universities in the US and Europe are increasingly looking to encourage spin-outs from their research centres. Hermann Hauser of Amadeus Capital Partners presents his view of the importance of this trend for European business innovation and technological advancement.

Maximising the value of innovation
24/06/2003. An innovative entrepreneurial culture is a crucial driving force behind economic development. Yet innovation can often be the first to suffer in tough times, when its benefits are needed most, according to 3i's report.

When will VCs start funding start-ups?
21/05/2003. Any revival of venture capital investment in innovative technology start-ups could prove a vital driving force for economic recovery in the US. Igor Sill, managing director of Geneva Venture Partners, discusses the current state of the US venture capital industry, its impact on the wider economy, and his predictions for the future.

Creative valuation techniques for venture capital fund reporting
23/04/2003. Following the recent high-technology bubble, disillusioned investors have become more cautious about their venture capital investments, especially with regard to the portfolio company valuations supplied by general partners. Mika Kaneyuki of Venture Valuation offers investors an insight into the reasons behind ‘creative' valuations in an attempt to increase transparency.

Moneyspinners: global commericalisation of R&D spin-outs
09/04/2003. Momentum behind university spin-outs is increasing, argues 3i in this white paper on the commercial potential of research and development. Expenditure on R&D is increasing throughout the world, and universities are becoming more aware of the possibilities for revenue and job creation through enabling spin-outs.

Boom and bust in the venture industry
26/03/2003. The dotcom bubble of the late 90s and the subsequent crash of the public markets has had far-reaching consequences for the venture capital industry worldwide. But can we prevent it happening again? In this extract from The Money of Invention Paul A Gompers and Josh Lerner of Harvard Business School take a look at the venture capital boom and bust pattern, which has been repeated, some say, since the early 1960s.

More Aftermath of the Bubble
12/03/2003. The continuing crisis in the venture capital industry is making it necessary, in some cases, to sell portfolio companies for less than the aggregate liquidation preferences of the preferred stockholders. Linda DeRenzo of Testa, Hurwitz & Thibeault runs through the legal implications of such transactions.

Technology demand and competition drive globalisation in 2003
26/02/2003. The venture capital industry is an increasingly global business, argues 3i US, with the best investment opportunities available to those firms that can provide the expertise and network to enable companies to go international.

VCs are bracing for a bleak landscape in 2003
04/02/2003. At the beginning of a new year, venture capitalists who have had to tighten their belts in recent months may be hoping for rather more lucrative times to come. But, says Beth Healy of the Boston Globe, it's not very likely.

Venture capitalists' forecast is pessimistic
28/01/2003. The US venture industry has been badly hit by the global downturn, with investment declining steadily since the tech bubble burst in 2000. And within the industry, it is tech-focused firms – often based in Silicon Valley – that have been hit the hardest. Matt Marshall of the San José Mercury News thinks that things are unlikely to pick up in the short term.

Marking time
07/01/2003. For venture capitalists, 2002 was a year in which to assess the damage caused by the storm of 2001 and decide whether to rebuild or move on. Julie Landry of Red Herring discusses what might be in store for 2003.

Too much ventured, nothing gained
18/12/2002. The enormous sums of money raised by venture capitalists during the boom years have created a problem for both general and limited partners, argues Russ Mitchell in FORTUNE. And as venture firms succumb to the hostile conditions at work at present and fold, it is likely to be entrepreneurs and, long-term, the world's economy that will suffer.

Liabilities of general partners of venture capital funds: old legal theories create new business realities, part 1
10/12/2002. Many venture capital funds are experiencing difficulties in the present hostile economic environment. This overview of the liabilities that general partners face, from James E Topinka and Carol Kerr of Coudert Brothers, outlines the different responsibilities and duties for general partners of venture capital funds.

Trap Door
26/11/2002. The venture capital industry remains in a tailspin as many are forced to hand money back to disgruntled investors. Buy-out firms are faring much better, however, and VCs are green with envy. Tom Stein of Red Herring reveals how many venture firms are now looking at a change in their investment strategy – a move that could be detrimental.

Tax planning for venture capital funds
19/11/2002. Tax issues for venture capital funds are particularly complicated in the US, says Murray Alter of PricewaterhouseCoopers. But if funds ensure from the outset that they have planned appropriately for any tax traps or problems that may arise during the life of their funds they are able to spend more time managing their portfolios and less time dealing with surprises. Alter's summary of tax issues to be aware of will enable fund managers to plan successfully for tax challenges. It also provides investors with an understanding of some of the issues faced by fund managers.

Under fire and unrepentant: American tech VCs turn nasty
12/11/2002. Despite the drastic fall from grace suffered by tech venture capitalists since the TMT bubble burst in 2000, not much about their attitude has changed, argues Andrew Orlowski of The Register.

Three keys to obtaining venture capital
12/11/2002. How do venture capitalists make decisions about where to invest? How do companies seeking venture financing tap into such sources? Marco Rochat and Keith Arundale of PricewaterhouseCoopers provide a useful view of the venture capital industry from the entrepreneur's point of view.

Venture capital as an asset class
15/10/2002. Venture capital investment is notoriously volatile, and it is vital for investors to take into account issues such as liquidity and risk tolerance when deciding whether or not venture capital is right for them. Yanni Bilkey Investment Consulting, now Yanni Partners, provides a brief overview of the industry and offers tips as to how to ensure that a venture capital portfolio is properly diversified.

The European venture capital industry: Why many companies fail; portfolio company cash surprises; how to predict, avoid
01/10/2002. Information may be one of the most important assets available to a venture capital fund. But many investments in Europe over the last few years have been based on hype and over-optimistic reports from analysts, argues Matthew Blagg of EMEA Consulting. Moreover, some companies base their decisions on reports or studies produced by companies with good reputations, regardless of the utility of the research they produce. The only way to stay ahead of the competition and succeed in venture capital investment, claims Blagg, is to ensure that your knowledge is comprehensive – and that once an investment is made, you keep on updating your information.

Fair game: extortion-style funding dies an early (and timely) death
01/10/2002. During the boom years of the late 90s venture capitalists found making money out of technology companies relatively easy. But when the IPO window crashed shut in 2000 and the returns stopped flooding in, venture capitalists began to try to ensure that the money any company made went straight to them rather than being shared by any previous investors. Peter Henig of RedHerring applauds the death of the MLP - multiple liquidation preference - after a life of only 18 months.

Venture capital - light at the end of the tunnel
27/08/2002. The venture capital community is still reeling from the bursting of the technology bubble as their portfolios continue to decline. But Daniel Allen of Wilshire Associates is upbeat, arguing that an opportunity exists today to build a venture portfolio invested with greater discipline at lower valuations.

Total US venture capital report
20/08/2002. The outlook for the US venture capital industry continues to be clouded in uncertainty. The second quarter saw an overall decline in capital raised and the number of companies receiving funding. Indeed, only two regions, the Pacific Northwest and the Great Lakes, saw quarter-to-quarter increases in total dollars raised.

Venture capital: a return to tradition
05/08/2002. In recent months, an unfortunate intersection of economic recession, post-dotcom woes and global unrest has upset the normal mode of operation for the venture capital community. Private equity investors are now beset by circumstances that are impinging upon their ability to make new deals and, furthermore, have greatly reduced the returns on their investment portfolio. In response, many traditional early-stage investors have moved to later stage investing in hopes of finding near-term returns, creating a substantial void in venture finance for start-up companies, especially in the high technology sector. Kenneth Dueker, Dr Comparini and Eric Wesoff of Portola Ventures ask just what should be done to encourage venture capital investment once again.

For some firms, niche funds are a perfect fit
03/07/2002. The bursting of the dot-com bubble should have inspired venture capital firms to diversify their portfolios. However, many funds have recently chosen to become more specialised, particularly in areas such as the life sciences and wireless. Is this a wise strategy, asks Julie Landry of Red Herring?

Entrepreneurialism and culture
24/06/2002. Why are certain regions more entrepreneurial than others? And what factors influence and promote activity, asks Jason Pontin at Red Herring.

Weathering the storm in a bunker
30/05/2002. The euphoria of 2000 is seen by many as an anomaly in the venture capital industry. Funds that invested heavily at this time are experiencing major hurdles to overcome. However, as Kit Gould of IDGVE argues, the news is not all bad.

Challenges and opportunities in the private equity market
27/05/2002. The current downturn should not make investors and entrepreneurs lose track of the longer-term returns. Products, platforms and technology pipelines will still be crucial to businesses, and investments in these products and solutions will not be simply abandoned. If anything, the current market creates a significant opportunity for VC firms to invest in buy-outs, says Amitava Guharoy of PwC.

The ageing of venture capital
15/05/2002. There has been a global downturn in venture capital fund-raising over the last year. The US has been particularly hard hit. Will Europe suffer the same fate? Chris Smart of IDGVE likens venture capital to wine-making – it has its good and bad years, but its quality cannot be truly assessed until after maturation.

Waiting for the next tide
08/05/2002. Last year was disappointing for the European VC industry. This year, however, could well provide many opportunities for recovery. Ajay Chowdhury of IDG Ventures Europe discusses the possibilities for the industry in 2002.

Israeli venture funding continues to fall
07/05/2002. Investment in Israeli start-ups continues to fall, and a majority of leading experts say this downward trend is here to stay, at least in the short term. Just 79 companies raised $376m in the first quarter, a 19 per cent fall from the preceding quarter and a 41 per cent drop from last year's figures, according to figures released from IVC Research Centre.

Corporation tax and innovation
07/05/2002. A high level of innovation is essential to the wealth of any venture capital market. This European Commission study examines the ways in which individual member states have used tax incentives to promote entrepreneurship and innovation.

Too big for the VC boots
02/05/2002. The technology boom of the late 1990s brought with it avarice on the side of venture capitalists. Niki Scevak of australia.internet discusses how fund managers are now left with too much capital.

Lessons from Softbank's hard knocks
15/04/2002. If VC firms are to continue to attract investment, it is essential that they learn some lessons from past mistakes. Knowledge Wharton looks at how Japanese firm, Softbank has coped with a difficult year.

Introducing tranches - the round within a round
11/04/2002. Financing companies in stages gives investors a more palatable funding arangement and allows goals to be set for management teams. But, argues Julie Landry of Red Herring, this spoon-feeding is not without its difficulties.

The state of venture capital 2002
03/04/2002. The boom in venture capital was one of the most interesting and well reported trends of the late 1990's in the United States. One of the more mind-boggling statistics from that period is the amount of venture capital invested in 2000: $103bn. In today's more sober investing environment, few observers expect to see such huge numbers. Venture capital investments are down - but how far down, and what does that mean for the industry's future? Erik Pages, the policy director at the National Commission on Entrepreneurship seeks to answer these questions by taking a look at the state of the US venture capital industry in early 2002.

VCs get cut down to size
20/03/2002. Many investors are refusing to provide cash to VC firms - they have become disillusioned by poor performance and feel that the initial objectives set up by these private equity firms have not been met. Tom Stein from Red Herring says that something must be done to reassure and appease limited partners.

Israeli venture capital funds raised and exits slowed dramatically in 2001
11/03/2002. The Israeli venture capital market had a miserable year in 2001. The volume of funds raised, the value achieved on exits, and the amount of merger and acquisition activity among venture-backed firms all slowed dramatically. The latest figures from research centre Israel Venture Capital found that Israel-related venture capital funds and investment companies managed to raise just $1.4bn in 2001, a 64 per cent fall from 2000 and a 25 per cent fall from 1999.

Strategies in global venture capital for the 2002 recovery
11/03/2002. Now that the technology hype has died down, the opportunities for the next generation of venture capital fund managers is genuinely exciting. In his annual presentation to Canada's McGill University, Jim de Wilde, previously a professor at the University of Ontario, explores the opportunities available, with a particular emphasis on the Canadian market.

Nothing ventured, nothing gained
05/03/2002. Venture capital has an important role to play in developing IT and communications technologies in emerging markets. But the view that these countries will develop their own Silicon Valleys overnight is misplaced, say Lee McKnight and Jesse Parker of the Edward R Murrow Centre. This study presents investors with some of the opportunities outside the more traditional markets, as well as some of the pitfalls of expecting too much too soon.

Venture capitalists: more caution, more due diligence, more diversity
18/02/2002. It seems like only yesterday that venture capitalists were being treated as masters of the universe, financing companies that promised all kinds of sophisticated goods and services. As 2002 begins, venture capitalists are more sanguine, but no less enthusiastic, about the future. Venture money is out there, but it will be staying more and more with entrepreneurs who have better grounding, better products and at least a modicum of a track record. Knowledge Wharton reports from its annual private equity conference.

Venture capital has gone from one unreality to another
05/02/2002. If one industry has been severely mauled following the twin dot-com and telecom debacles, that industry is venture capital, says Knowledge Wharton. During the late 1990s venture capitalists, lured by sky-high valuations for high-tech start-ups of every ilk, poured millions of dollars into enterprises that have now gone up in flames. And with the fate of a broader economic turnaround still uncertain, it might be a while before the prospects for venture capitalists improve.

Israeli high-tech companies see surge of foreign investment in fourth quarter
05/02/2002. Israeli high-tech companies saw a significant escalation of venture capital investment in the fourth quarter of 2001, supported entirely by a massive increase in commitments from non-Israeli VCs, according to the latest figures released by Israel Venture Capital (IVC). The figures cast a glimmer of light across the Israeli venture capital stage at a time when an unstable political situation, the collapse of the internet sector, and the backdrop of a global economic slowdown have all taken their toll on the industry.

Renewed emphasis on the value of IP - it's back to basics
28/01/2002. The plummet in valuations of technology start-ups over the last year has led many VC firms to reassess their investment criteria. Michael Kagnoff and John Benassi of Brobeck, Phleger & Harrison LLP discuss the importance of a solid intellectual property rights strategy for companies seeking future rounds of financing.

Securities regulation in the new economy
28/01/2002. The gradual and prolonged development of the venture capital industry throughout the 1990s created a unique investment infrastructure which was to play a central role in the recent ‘tech boom'. However, as Warren Scott and Anthony O'Hea of Coudert Brothers argue, VCs' rush to IPO with their investments and the lack of pervasive action from the securities regulators led to the ‘tech wreck' of 2001.

Should old 2001 be forgot? VCs say yes, set sights on better
10/01/2002. The Chinese dubbed 2001 the year of the snake, but it may forever be remembered as the year of the post-tech wreck recovery, at least in venture capital circles. Private Equity Week's Robyn Kurdek offers a view from the US.

International VC: the role of start-up financing in the US, Europe and Asia
09/01/2002. On the global VC scene, the US will continue to set the standard for many years to come, according to Jeffrey D Nuechterlein of National Gypsum Company. Here, he offers an insight into why the US still attracts most VCs compared to other regions.

Ten trends for what's ahead
20/12/2001. If the technology sector is to attract investment again, it must shake off the negative connotations that are associated with it. Red Herring dares to make some forecasts for the next year by predicting some trends that will emerge in this sector.

Capital raised by Israeli high-tech companies
12/12/2001. Investments into Israeli high-tech companies slumped in the third quarter of this year, showing a 66 per cent drop on the same period in 2000, according to these figures from venture research house IVC.

Now is the right time to invest in venture capital
11/12/2001. Venture capital has undergone a difficult time recently. Rufus King of THT insists that despite the palpable difficulties in the market, it is necessary to put the situation in perspective by looking at the history of the market in the last ten years.

Is Europe's venture capital market finally emerging from the hotbed?
11/12/2001. The private equity industry claims to think over the long term. If that were really true, the inflow of capital and the amount invested would grow roughly at the pace of the overall economy. However, the numbers offer another reading. André Jaeggi of Adveq Management discusses.

Formal venture capital in Southern Europe: history and development
04/12/2001. The Southern Europe VC market has grown quickly thanks to stock market development and the move towards a single currency. For investors with an interest in this region, Jose Marti of WebCapitalRiesgo offers an overview of the developments and how the market stands in the present day.

Venture capital investment in the new information age
03/12/2001. This article from Harvard Asia Quarterly listens in on a panel discussion chaired by Professor Hardymon of Harvard Business School. He drew members of this panel, all active in various technology investments, into a debate on the opportunities and challenges of venture capital and private equity investment in Asia.

Venture capital - rising from the dot com ashes
03/12/2001. Venture capitalists are exercising caution, having had their fingers burned by failed dot coms. Due diligence and a sound business plan are the best route to profitability says Mark Samuels of Computing magazine. He foresees technology investment to be directed towards proprietary technologies that are protected by patents. So much has changed since the dot com boom that smarter start-ups are revising their business plan, he says.

Towards a unified approach to cross-border venture capital documentation
27/11/2001. With the increase in cross-border venture capital deals, it is increasingly important that companies and investors can agree on how the transaction should be documented. Here, Brobeck Hale and Dorr outline current stumbling blocks arising from differences between US and UK styles of documentation.

With the bubble gone, VCs still find flavour.
21/11/2001. John Wachtmeister, CEO and partner of Swedish VC company Ledstiernan offers his insider's view on the European VC experience since the dotcom bubble has burst.

The economy's down and investors are wary: it's a good time to launch your company
20/11/2001. In a market characterised by daily reports of e-businesses closing their doors and the NASDAQ continuing its tailspin, who would want to start a company now, asks Knowledge Wharton.

Adventures in venture: reality check
17/10/2001. Venture capital is now here to stay in Europe, according to this report from Lehman Brothers. Venture capital funds in Europe have outperformed all other asset classes with top European funds returning 44 per cent to investors over a ten-year period

Early-stage VC's work the late shift
19/09/2001. Young companies on the hunt for funding are having difficulty raising money from venture capitalists, who have switched to backing more mature companies, says Red Herring.

Protecting VC investments in TMT
10/09/2001. Following the lead of the US, the past few years have seen a significant increase in venture capital activity in the UK and Europe. Although the recent rate of growth is not expected to continue in 2001/2002 in line with expectations of a slowdown in the general economy, it remains an exciting time for the VC industry. This article examines some of the trends that have emerged in VC deal structure, often in response to the high risk nature of many of the investments made in the TMT (technology, media and telecoms) sector.

Venture Capital: capitalising on the weak new issue market
23/08/2001. Venture capital firms enjoyed great success with internet and technology companies early on in 2000. The sudden fall in demand for new issues later in the year had far-reaching implications for the markets. This Lehman Brothers article studies the main issues for venture capital investors in the current environment.

Private Equity Market in Hungary 2000/2001 Q1
03/08/2001. Private equity investment in Hungary is slowing down after a big boom of last year, according to this report by the Hungarian Venture Capital Association.

Valuation - means to an end or end in itself
13/06/2001. The way that companies are valued has a direct impact on the valuation that a limited partner receives from its private equity fund investment. There has been a lot of recent speculation about the effects of over-valuing portfolio companies and the effect that has on fund portfolios and their investors. This article looks at the method and thinking behind how a venture capital fund values its portfolio investments, giving investors an insight as to how this is reflected in the valuations it receives.

Venture Capital & Family Business
13/06/2001. Fewer UK family businesses would fail if there was more venture capital support for the sector and if companies themselves were more willing to accept outside financing. This is the key finding of a report conducted by Manchester Business School and commissioned by the Stoy Centre for Family Business.

Financing of Technology-Based Small Firms
29/05/2001. The UK venture capital industry is the largest and most developed in Europe, but it is reluctant to invest in small, high-tech start-ups. This Bank of England Report examines why.

Even in bad times, good ideas will get funding
29/05/2001. After the great boom of the eighties came the great technology bust. The Wharton ‘Private Equity in the New Millennium' conference in January examined the future of private equity in the light of a lack of venture capital investment. And the message? There will be fewer deals - but they'll be better ones.

Venture capital in Europe: an emerging force
29/05/2001. Europe is on the map again, thanks to surges in internet activity, venture capital and M&As. Held in December 2000, the Wharton Global Business Forum reports on a burgeoning venture private equity market in Europe, belying the view that Europe is a minor player. Quite the reverse – panellists predicted a European ‘merger-quake' over the next ten years.

Venture capital industry: refreshed and ready to rebound
29/05/2001. After Nasdaq dropped more than 300 points one fateful day in April 1999, venture capitalists and entrepreneurs alike have had to rethink, says a Wharton report. But there has been a positive outcome – VCs are giving more consideration to management quality and relevance of business. Written in August 2000, this is a useful historical article.