Number of US venture capital firms fell by 21% in 2004

The number of US venture capital firms fell 21% in 2004, according to Ernst & Young and reported by Red Herring magazine. Portfolios shrunk 14.

The number of US venture capital firms fell 21% in 2004, according to Ernst & Young and reported by Red Herring magazine. Portfolios shrunk 14.6% between 2003 and 2004. A total of 257 venture-backed startups went out of business last year, about 5% of all the companies in VC portfolios. That was down from 2003, when 10% of venture-backed companies folded.

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