The Slowing Side of Venture Capital

on April 11, 2012

Venture-backed IPOs may have just had the best first quarter in five years, but it seems that doesn't mean the industry is out of the woods yet. More data released by the National Venture Capital Association shows VC firms right now are raising less. Here's a look:

There are two concerns here: the number of firms that have raised capital is down about 9% while the amount they've raised is down a significant 35%. This is concerning since the funds they raise are crucial towards entrepreneurial companies getting off the ground. The bright-side of the NVCA's report is that they say venture firms "appear to be more optimistic" about 2012. They also expect more firms to enter or raise funds later in 2012. That will determine what kind of year 2012 turns out to be for the venture capital industry.