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Start-up investments plummet as VCs struggle for cash

65 per cent drop doesn't bode well for entrepreneurs...
Written by Ian Jones, Contributor

65 per cent drop doesn't bode well for entrepreneurs...

Investments in fledgling companies plunged 65 per cent in the US during 2001, as venture capitalists (VCs) tightened their belts. Research conducted by VentureOne indicates that only $32.1bn was invested last year compared with $91.6bn in 2000. Sliding stock markets meant virtually no start-up firms were able to float, reducing income for VCs and hence forcing them to cut back on further investments. For related news, see
Former Netscape chief to e-scape from venture capitalism
http://www.silicon.com/a50251
Re:Viewing
2001: dot-com lessons
http://www.silicon.com/a50093
3i
lays off one in five
http://www.silicon.com/a48729
Five
recession stories you really should read
http://www.silicon.com/a47435 To buy related reports or event tickets, click:
Event: Interactive Games Summit 2002 http://www.silicon.com/goto-ecc-na1
Report:
P2P Networking Overview Report http://www.silicon.com/goto-ecc-na6
Report: Databases: An Evaluation and Comparison http://www.silicon.com/goto-ecc-na2
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