WestVirginiaRebel Posted October 11, 2011 Share Posted October 11, 2011 Los Angeles Times:The U.S. venture capital industry raised its lowest amount of money in eight years, stymied by a recent panoply of economic bad news.Firms raised $1.7 billion in the third quarter, said the National Venture Capital Assn. That's 53% less than the $3.5 billion raised in the same period a year earlier and the smallest pot since the third quarter of 2003.The year started out with heavy fundraising, garnering $7.6 billion in the first quarter.But then the economic recovery began to sag. Europe found itself mired in a debt crisis. U.S. credit was downgraded. Companies began delaying or calling off anticipated initial public offerings -– Zynga, Groupon and Facebook have all yet to go public, despite rampant speculation."Economic instability continues to impact the ability of venture-backed companies to go public which, in turn, has prevented many venture firms from delivering solid returns to their investors," Mark Heesen, president of the venture capital group, said in a statement.The industry, he said in a blog post, has been investing more than it's been raising since 2008 -– an overhang that will reach $20 billion by the end of the quarter."Just like a bubble," he wrote in the post, "this imbalance is not sustainable."________So much for "Punishing the wealthy." They're already being punished. Link to comment Share on other sites More sharing options...
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