After a decline in venture capital investments in 2009, a predictions survey conducted by the National Venture Capital Association shows that polled venture capitalists have a cautiously optimistic outlook for 2010.
Almost half of those surveyed expect that venture capital investment will slightly increase throughout 2010. Especially, investments in clean technology, internet, software and media and entertainment companies are expected to grow. 54% of respondents forecast higher investment level for clean tech enterprises followed by 46% for internet, 33% for media and entertainment and 32% for software companies.
The survey also points out that there will be fewer investments in seed and early stage companies; however, the NVCA president, Mark Heesen, recognizes the need to help and support young entrepreneurs: “Seed and early stage companies represent a pipeline that must be supported if our country is to continue building new and innovative companies.”
Even though many venture capitalists are cautiously optimistic, the research concluded that they are expecting a contraction in size of the venture capital industry. Most VCs predict that the number of firms will drop during the next five years. This does not directly imply, however, that their will be fewer companies funded.
Are you optimistic and do you think the amount of investing will increase slowly but steadily? Or do you want to remain realistic, expecting a smaller investment industry with fewer and smaller investments?
Source: Article ‘Venture Capitalists’ predictions for 2010 – press release’ on www.nvca.org.
