Venture Funding May Fall This Year for First Time Since 2003
Oct. 8 (Bloomberg) -- Venture capital investments will probably fall this year for the first time since 2003 as the financial crisis cripples the markets for acquisitions and initial public offerings.
U.S. startup funding may drop in the third quarter, said Tracy Lefteroff, a managing partner at PricewaterhouseCoopers LLP, which does consulting work for venture capital firms. In July, Lefteroff said investments in 2008 would be ``on par'' with the $30.7 billion invested last year.
Turmoil in the credit markets is making it more difficult
for young companies to raise money as venture capital firms
concentrate on existing investments instead of making new ones.
The number of deals closing sank last month, and the aversion to
risk is even spreading to clean-energy companies, one of Silicon
Valley's hottest sectors since 2006, said Greg Blonder, a
partner at Morgenthaler Ventures.
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