Latest Venture Capital Trends

The number of U.S. venture capital firms fell 21 percent in 2004, according to a study by Ernst & Young.

The number of venture-backed startups worldwide fell as well. Portfolios shrunk 14.6 percent between 2003 and 2004 as venture consolidated companies and gave up on losing bets, the study said.

Although the total number of startups declined, the number of new investments increased 4 percent. This suggests VCs are starting to accelerate spending to replenish portfolios as they exit from older companies. “The post-bubble clean-up is still under way,” said Ernst & Young’s Gil Forer.

My question is: what are you seeing in your area?

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